Suzana Wade of Locate Property is a local Brisbane property management expert who is on the ground in Brisbane, speaking to tenants every day. Her insight is invaluable when actually trying to ascertain investor sentiment and tenant feedback for Brisbane Properties, and right now is a bad time to be a tenant.
Property rents are increasing, and vacancy rates are at an all-time low. However, this should be an excellent time to be a property investor. However, why hasn’t this translated to more investors buying right now?
Tenant demand is robust, rental prices are rising, properties are in little danger of sitting empty, rental returns are strong, and it’s starting to shift to be a buyer’s market in many locations thanks to recent declines in purchasing prices.
However, investors have been noticeably absent from the festivities. According to Australian Bureau of Statistics data, the value of investor lending for homes in February was down 32.6% year over year. Overall, house lending was down 30.9%.
It’s crucial to emphasise that a lack of investors isn’t the only reason for our housing crisis; governments and a lack of development are also to blame (the number of dwelling approvals in February 2023 was down 31.1% from the previous year).
However, investor participation helps to alleviate the crisis.
The main obstacle, according to PropTrack economist Angus Moore, has been interest rates, which have crushed investors due to limited borrowing capacity and higher mortgage rates.
repayments just like everyone else. The Palaszczuk government’s new tenant legislation is a close second in terms of the reasons keeping investors out of the Brisbane property market.
Although prices have retracted by on average 5–10% over the last 18 or so months, investing in Brisbane Properties is unquestionably more expensive thanks to interest rates and hidden investment costs. “During the pandemic, we actually noticed more investors selling than buying,” Suzana said.
“Many people saw their overall wealth decline as a result of falling home prices.” “Also, given the low number of property listings and limited new homes to buy, there hasn’t been a large selection of investment property options for investors to purchase with an attractive price discount incentive.”
Investors for Brisbane properties have the opportunity to profit.
Experts believe the moment is now, with capital city vacancy rates still falling and rental prices rising as housing supply is limited and population growth is high.
According to PropTrack statistics, a vacancy rate of 3% is considered desirable as a market equilibrium between tenants and owners; however, capital cities recorded a rate of only 1.43% in March 2023, down 55% from March 2020 and 0.66% from March 2022.
Sydney and Melbourne experienced the most significant quarterly declines, while Brisbane, Perth, Adelaide, Hobart, the ACT, and the regions experienced modest rises.
According to the ABS, 303,700 people are predicted to move to our shores in the year ending June 30, 2022; a larger proportion of them than the average population is likely to seek rental accommodation.
Meanwhile, advertised rental prices on realestate.com.au rose 2% nationally in the first quarter of 2023 to a median of $500 per week, representing an 11.1% increase over the previous year and the fastest rate of rent growth since well before the pandemic.
“Given how tight rental markets are and how competitive they are, we’re seeing rents grow extremely quickly across the country.”
“The only long-term solution is more housing.” “And more investors are purchasing such homes.”
Investor demand is expected to rise.
According to Warren Hogan, an economic advisor with Judo Bank, the present rental problem would certainly encourage additional investors to enter the market.
“We know there will be a supply squeeze and that the population numbers are there.” Rents will continue to climb, as will rental yields; prices will not fall much further and will most likely begin to rise.
“This is an excellent time to enter the market for a long-term investment.”
Some investors appear to be in agreement.
Despite borrowing less, their share of all borrower-accepted loans is increasing.
According to the ABS, investors accounted for 33.7% of all transactions in February 2023, up from 24.2% in February 2021 and 27.3% in February 2020.
Many Brisbane tenants are having trouble making ends meet due to the city’s housing affordability crisis. Property managers in Brisbane have a critical role to play in tackling these issues, even as governments and industry bodies attempt to develop solutions.
A property manager in Brisbane, like Suzana Wade of Locate Property, points out that people in the property management industry should stop waiting to be told what to do and start to implement changes and take the initiative to put down solutions that have a lasting impact on the coal face.
Too many property managers are claiming expert status and offering nothing to the solution.. Leadership in this crisis means doing what needs to be done and doing it in a way that has an impact that counts for both tenants and landlords. This involves providing renters with flexible rent payment options, integrating necessary services, and making every effort to ensure their safety and property security.
Property managers in Brisbane that show real concern for their tenants’ welfare typically attract and retain renters who are more loyal, trustworthy, and proud of their rental homes. This has a knock-on effect for those owners lucky enough to have a property manager who sees the value in providing these solutions for the current crop of tenants.
High property prices, increasing credit scores and finance requirements, and inflation that diminishes purchasing power are all obstacles for many Brisbane tenants hoping to one day own their own home. That’s why it’s more important than ever to have access to rental housing, especially affordable rental housing. Working with tenants, governments, and industry groups, property managers can take the lead in finding solutions to the housing affordability challenge.
Individuals and families, the housing market, and policymakers all need to work together to solve the housing affordability challenge. Property managers in Brisbane have a responsibility to meet the needs of their tenants, who should continue to put their necessities ahead of their wishes. Property managers in Brisbane may lead the way towards a more just and sustainable housing market by seizing the reins and making necessary adjustments now.
Whilst the REIQ is fighting the good fight against these crazy new rent reform laws that will only worsen the housing supply and therefore place more pressure on rental price, property managers in Brisbane need to be next in line to effect change. For more Articles on Real Estate trending topics like this follow me HERE
A property management Brisbane firm, Locate Property, founded by Suzana Wade, who is now speaking out against the state government’s new rental reform regulations. Beginning on July 1, 2023, rent hikes are only allowed to occur once per year as a result of new laws established by the government. However, as a result of the transition arrangements, any rent increases that were previously agreed upon in the lease will also be null and void as of this date.
Ms. Wade and Antonia Mercorella, chief executive officer of the Real Estate Institute of Queensland (REIQ), have both expressed displeasure with the retroactive nature of the new legislation. Ms. Mercorella has cast doubt on the legitimacy of the government’s choice to disregard previously negotiated contracts. Ms. Wade counters by saying the government’s action is unwise and may have lasting effects on Queensland’s real estate market.
Property Management Brisbane companies like Ms. Wade’s are worried that the State Government of Queensland’s ongoing stream of legislative changes may discourage property investors from putting money into the state. She warns that watering down property investor rights might have dire ramifications for Queensland’s rental market, as private investors are the primary source of housing for the state’s 1.5 million renters.
Ms. Mercorella has warned the government against being overly prescriptive when revising rental laws. She thinks the measures need to strike a good balance between protecting tenants and enticing investors to remain in Queensland. Ms. Mercorella warns that ignoring the importance of property investors could have disastrous effects on the rental sector in the state.
As a result, it’s safe to say that neither Ms. Wade nor Ms. Mercorella approve of the state government’s new rental reform regulations. They contend that these regulations could have a significant negative impact on the state’s rental market and all property management Brisbane firms as it will undermine property investors’ confidence in Queensland. They advocate for reforming the state’s rental laws in a way that is both thoughtful and balanced, protecting renters’ rights while also acknowledging the role of property investors.
To access Stage 2 of the proposed Rental Reform laws Click HERE
Locate Property’s Suzana Wade predicts that renting in Brisbane is about to get even harder with record rent increases over the next 12 months. Tenants throughout the country have another rough year ahead of them as rental costs continue to rise, as seen by recent statistics from PropTrack. According to the data, rentals across the country have increased by 2 percent in the first quarter, to a median of $500 per week.
In the past year alone, rents have increased by 11%, which is the biggest annual increase seen since before the epidemic. Rents in the nation’s capital increased by 4% from the last quarter of 2022 to the March quarter, bringing the yearly increase to an astounding 13%. Meanwhile, rents in the region have climbed by 2.2% from the fourth quarter of 2017 to the first quarter of 2018 (an annual increase of 4.5%).
Particularly in renting in Brisbane but also in Sydney, Adelaide, and Perth, rents are rising “at an extremely rapid pace,” as the paper emphasises. In fact, Perth rents increased by 9 percent in the most recent quarter. PropTrack’s analysts are sounding the alarm that rent increases are likely to persist due to the current tight rental market. Particularly true in nation’s capital, where rent hikes have remained steady since they first began to accelerate in early 2022. As the pandemic has progressed, rent rises have slowed in the regions.
Except for the Australian Capital Territory and remote South Australia, rental prices rose across the country in the March quarter. The Reserve Bank of Australia (RBA) has lately paused its long-running cycle of interest rate hikes, opting to maintain a cash rate of 3.6 percent instead of raising it. However, rising rental costs show little signs of slowing down. Therefore, renters everywhere will be hit even harder than usual this year.
For more articles on trending Real Estate articles click HERE.
Locate Property’s principal and licensee, Suzana Wade, explains the property management fees in Qld and how it tends to operate, particularly in Brisbane.
As a landlord in Brisbane, you should know that the cheapest option is not always the best when it comes to hiring a professional management company.
The company offering the lowest prices may appear to be the best choice, but you shouldn’t automatically assume that this is the case.
We’ll explain the various components of property management fees in Qld and why you shouldn’t base your decision solely on the bottom line.
The first order of business is to figure out what kinds of services the property management company offers. A property management company will charge you a management fee for their services. These costs may vary widely depending on factors like the company, the location, and the nature of the services rendered.
The monthly management fee for a rental property in Queensland is typically a combination of a flat rate and a percentage of the rental income collected by the owner. This figure typically falls between 6 and 12 percent, though it can be higher or lower depending on the nature of the business and the services it offers. Some companies, especially those that advertise themselves as “full service” property management firms, may charge extra for services like inspections, reports, maintenance, and access to technology.
Other property management fees in Qld may include but not be limited to the following:-
Rent Collection Fee
Court Appearance or QCAT fees
File Closure Fees
Technology fee (depending on the additional services that may be on offer )
Renovation / Maintenance % over a certain dollar value.
A successful property management firm will reinvest its earnings to attract and retain a more talented workforce and to expand the range of services it offers to its clients (the building’s owners and tenants). The success of any modern business depends on its ability to attract and retain highly skilled employees.
What you, as the owner, want to do is find a happy medium between service costs and service offerings. The key, according to Suzana Wade, when entrusting someone with a valuable asset like an investment property is to find a middle ground where you can get great value and a comprehensive set of services at a fair and realistic price.
If you can’t decide between two or more agencies, Suzana advises you to trust your instincts and work with the one that feels right, regardless of how much it costs.
The following list will offer you some additional points to look into.
Do they view property management as their main line of business or more as an add-on to their sales department?
Does the principal have a background and work history in property management or sales?
Have you had the opportunity to speak with and meet the person who will be in charge of looking after your property?
Are their reviews accurate and do they mention the names of the people you’ve met and you will be working with.
Maintaining excellent lines of communication between all members of the team and the owners and tenants is essential to the success of any business.
Choosing a property management company is a very individual process, your interaction with the company’s day-to-day operations and how you are treated by its employees will determine how satisfied you are with the service you receive.
Just remember that a few dollars saved now may amount to thousands that a poor appointment will cause over the longer term. Loss of rent, unattended maintenance , poor tenant selection one that here at Locate see all the time, little or no rent reviews, leaving thousands of dollars on the table.
Just remember a sign of a good property management firm is that when it is running well, everything works as it should, updates come through, reports are on time and accurate and you will hear less and less from your property management firm. Just ensure that your checks and balances are in place to ensure they are doing the job that you are paying them to do and once you have built up this trust, this is how it should be.
In conclusion, it is essential to weigh the quality of services against the cost when evaluating property management fees in Qld. Choosing the right agency based on the property management fees Qld alone might result in subpar service and damage to your bottom line. If you want your investment property to succeed over the long run, you need hire a management firm with a solid reputation, knowledgeable employees, and extensive offerings where you are getting VALUE which will never be the cheapest.
Click here for more helpful information from the REIQ
As a Property manager in Brisbane, I can attest to the difficulty of the current rental situation for tenants. Finding and securing a rental property is difficult because demand is at an all-time high. Tenants can improve their chances of finding their ideal rental property by taking certain actions, however. In light of the current rent crisis, here are the top five things that tenants should do:
Tenants should be well-organized and ready, as there is a lot of competition for rental properties. This includes having references, income documentation, and identification ready and available. Tenants who are well-prepared will be in a better position to act swiftly once they locate a suitable rental property, which is especially important in the current market. Have all of this information ready to submit upfront so that the agency in question doesn’t need to spend days running around for you.
Flexibility in property type and location is especially important in the current rental market. While tenants may have their hearts set on a specific neighbourhood or style of rental property, they may fare better by being flexible and open to exploring other options. Tenants can gain additional insight into their options by working with a Property Management Brisbane team.
The rental market is competitive, so it’s important to take the initiative in finding a place to live. This entails persistently monitoring online listings, making use of open houses, and signing up for property alerts. Tenants who turn up early, make themselves known to the agency as a great potential tenant that carries the right attitude will stand out from the crowd.
Be Truthful- Tenants should provide accurate information about their rental application, including their income and employment status. Property managers Brisbane will throughout check the information provided so if you have any challenges with your supporting documents, ask to speak to the property manager Brisbane and see if there is a solution that you can offer the agency.
You’re APPROVED – This is not the end of the process but rather the start. Building up a strong relationship with your property manager in Brisbane will ensure that your next application is supported by the agency. Ensure that your rent is paid on time and get the rent transfer dates set correctly. Be a pleasure to deal with. The reference that this agency offers to the next time you want to move into the property is the Number 1 thing that agency will look to, when decided your conduct as a tenant.
Tenants in Brisbane need to be proactive, flexible, honest, communicative, and prepared in order to secure their ideal rental property in light of the city’s current rent crisis. Finding a good rental property in the current market can be difficult, but working with a property manager in Brisbane like Locate Property can help you throughout this journey. Make yourself known, come in an introduce yourself anytime. For other tips, the REIQ can be a great resource.