The long-ago dream of home-ownership is evolving and, for many, the prospect of saving enough money to get a foot in the property door is becoming more out of reach as property prices continue to soar – especially in the sought-after Sydney market.
The so-called Generation Rent is dealing with a new reality – and the concept of renting into retirement years and beyond is a new experience that no other Australian generation has had to explore. Although the older generation of Australians has a strong foundation in home-ownership, data from the Australian Bureau of Statistics show the number of Australian first-home buyers has halved in the past decade.
In fact, a survey of 1000 young Australians from REST Industry Super showed a staggering 80% of first-home Millennials feel they will never be able to achieve the savings required to invest in property.
Turning a rental property into a home
These statistics herald a change in the rental property market. For tenants seeking a roof over their heads, it’s no longer a matter of looking for a property that will just ‘do’ – they want a property they feel at home in. A place to call home – for the long term.
It’s a reality that makes the issue of professional property management more important than ever. With tenants seeking long-term relationships with landlords and the property management agencies that look after these rental properties, choosing a property management team that can truly protect your asset and nurture these long term tenancies is more important than ever.
Landlords and tenants working together
Governments are now also more focused on protecting the rights of long term tenants. Given that properties may be leased to one tenant for many years, it is important that these tenancies are carefully and properly managed to provide a harmonious and beneficial relationship for everyone involved.
Choosing tenants for life
The most recent research from the Australian Housing and Urban Research Institute reveals a boom in the percentage of long-term tenants who rent for ten years or more. And the numbers are set to increase.
In the competitive world of rental properties, choosing who to say ‘yes’ to is a pivotal decision for any investor and property management team. Once chosen, a tenant may remain in the property for the long term (and with the right to stay potentially becoming more protected by legislation) and it’s important to take a longer term view to tenancy selection, in the same way that tenants are correctly becoming more discerning with their property choices as they may be living there for many years.
From an investment perspective, long term tenancies can only be seen as beneficial as this reduces leasing expenses and vacancies between tenancies. A prudent investor understands the value in a long term tenancy and will keep the property well maintained and potentially be proactive with work that may be necessary over time to maintain the property’s appeal.
Making a house a home
Landlords who provide quality rental properties with neutral, timeless décor and good quality fittings and fixtures will find quality tenants to live in and care for them. The care that is taken to provide a property that feels like a home, results in it being appealing to the growing number of quality tenants looking for just that. A place to call home for the long term, and this is a win for everyone involved.
About Laing & Simmons Double Bay Property Management
Laing + Simmons Double Bay Property Management is part of a high-profile franchise group yet remains independently owned by Principals Suzie Reid and Bart Doff.
The office is acknowledged as the market leader in prestige Eastern suburbs leasing, a reputation which has been forged in over 25 years leasing and managing a large portfolio of the best properties available in the Eastern Suburbs rental market.
Contact us today to see how we can help manage your investment property, or to find a rental property to suit your needs.