Melbourne’s rental market has undergone significant changes over the last 12 months, which has led to residential rental providers selling up. Changes to the Residential Tenancies Act at the start of the year made owning an investment property less attractive. And this was only exacerbated by the effects of COVID-19.
Recent VCAT data looking into the rental market post-commencement of the latest Residential Tenancies Amendment Act found the sale of a premise was one of the top three reasons rental providers issued notices to vacate between August and October this year.
Ranking first was the failure to pay rent; the second was the sale of a premise and, thirdly was the reoccupation by the rental provider or their family. We also must consider, owners who are reoccupying their investment property are likely planning to renovate the residence in preparation for sale.
This is a trend we have been witnessing in the rental market all year, and now, the data is starting to reflect it.
If you are a residential rental provider thinking of listing your investment property, my advice is to hold out. In the very near future, we are going to have a shortage of rental properties and prices will return to pre-pandemic levels. We are already starting to see rental houses, go up in value.
To discuss your options in further detail, give us a call today!
The full report can be found here: https://www.vcat.vic.gov.au/sites/default/files/2021-11/rt-post-commencement-data-02-Aug-to-31-Oct%202021.pdf