MARCH 2023 NEWSLETTER
A WORD FROM OUR DIRECTOR
We’re rolling into the year now and we have noticed things have settled down a lot in the real estate sector. Although there was a slight increase from the RBA late last month, interest rates seem close to flattening out. More importantly people in general are gaining confidence that the property market hasn’t and will not decline too much in terms of price. The result is that people are now getting back to making decisions on buying and selling property. Added to this, vacancy rates are super low and there has been a continual spike in demand for rental properties which is injecting plenty of confidence into the investment market. Catherine and our property management team have had another solid month which was similarly reflected with our sales team again with great numbers and an obvious increase in enquiries and activity. On a side note, Bendigo was bursting with visitors over the Easter weekend, it was just fantastic with an estimated 40,000 people watching the torchlight procession and 40,000 watching the main procession on Sunday, it is estimated 70,000 people attended the festival over the four days and accommodation was entirely booked out throughout Bendigo. Well done to all the organising team at City of Greater Bendigo and everyone involved in the weekend in whatever form.
HOW TO DETERMINE WHAT RENT YOU SHOULD CHARGE
With rental prices rising, you may be wondering whether you’re still charging the right amount and if you should change this when the time comes. While markets in capital cities and regional locations have experienced significant growth in recent months, opting for a hefty price increase without doing your research can be risky. First, it may take longer to find a great renter if your property is currently vacant. And second, if your renters are coming to the end of their fixed-term agreement, offering them a new agreement with an above-market increase could prompt them to look for another property. Like many things in property pricing, getting the balance right is key. Keep reading to understand how to decide what you should charge.
Focus on the market to make your own estimate
Strong rental price growth is great for investors, but it can be stressful for renters. Hiking your rent price too much can cause great renters to find another property. To get an idea of how much you can reasonably charge for rent, list everything your property has to offer. This includes the number of bedrooms, locations, bathrooms, car spaces, and other amenities such as separate laundry, air conditioning, and outdoor space.
From here, look at the location. What does the area offer to potential renters? Think about cafes, walkability, local schools, and proximity to the CBD and other employment hubs. After considering local amenities, use property search websites to compare similar properties in the area. Once you know how much comparable properties are renting for, add other expenses such as electricity, water bills, and internet, if applicable. With all your property details and research gathered, you should be able to estimate what you can charge.
Talk to your property manager
Your property manager works closely with the market each day, so they know exactly how much properties are renting for and what you may be able to charge in the current market. If you’ve worked through the steps above to come to your estimate, talking to a trusted professional to make sure it’s accurate is critical. They’ll be able to guide you on the exact price to charge to secure a great new tenant or keep the great tenants currently living at your property.
Think long term
Your property manager can also help you negotiate more detailed particulars, such as a long-term lease. Some potential renters may be looking to sign longer leases than the standard six or twelve months. In these cases, your property manager can work with you to determine how much to charge. While you may be worried about missing bi-annual or annual rent increases, securing a longer-term tenant could provide more stability and increase your chances of finding a tenant who will take exceptional care of your home.
It can be tempting to make significant increases to what you charge in a tight rental market. While this can put more money in your pocket, making the wrong decision about what to charge can deter great renters or prompt your current renters to move out. Before you decide to change how much rent you charge, do your research, and talk to your property manager, who can help you make sure what you’re charging is fair. Not only will this reduce your risk of vacancy, but it will ensure you get the best long-term returns.
HAPPY EASTER
We hope everyone had a great long weekend and had some fun with family & friends.
IMAGINATION LIBRARY BENDIGO GOLF DAY
Darren, Jackson, Simon and Jedd had a great day of golf at Belvoir Park Golf Club for the Imagination Library Golf Day Fundraiser. All proceeds & donations are going to support children from ages 0-4 who have limited or no access to books in their homes.
CALIFORNIA GULLY PRIMARY SCHOOL
Following an office chair reorganisation, we had several chairs left which was fortunate as California Gully Primary School were in need of some extra ones. The chairs were greatly appreciated and we are thrilled to have been able to help out!
BUNKER HQ
The PH Property team had an tough morning session at the Bunker HQ, very grateful to Rino for leading it and Shane for arranging it.
VIDEO TESTIMONIAL
Click here to check out this amazing video testimonial from our vendor at 54 High Street in Kangaroo Flat! He shared his experience working with sales agent Samantha Martin and we couldn't be happier with the feedback. We take pride in providing an exceptional service and it's great to see that our hard work is valued.
INTERNATIONAL WOMENS DAY
What a great day we celebrated the remarkable contributions that women have made and continue to make to society, from breaking barriers to driving progress in every field. Let's continue to support each other and work towards a more equitable future for all women. We’re so proud of the ladies in our office, always working hard and getting impressive results!
ANNIVERSARIES
