This month we would like to share some general market information and some insights into Belle’s strategies for increasing investor returns.
Media reports suggested a softening in the rental market for the month of February and we’ve been hearing that echoed throughout the market place in general.
38 days was the average days on market or time taken to secure a new tenant across the industry and the average weekly rental for house in the Illawarra dropped from $520 per week to $500 per week, apartments also saw an adjustment downward by $10.00 per week to $420.00.
This is in stark contrast to the results we’ve experienced in our management department over the course of the last 30 days.
Our days on market is significantly lower at only 13 days, shorter days on market reduces loss of income and in turn delivers a higher return to our landlords, averaging approx. $1,100.00 per year.
Another positive take away for investors was our ability to secure rental increases during that period, again in contrast to the $20 per week reduction the industry averaged for houses. Of the properties that qualified for a rental increase during that period, we negotiated an average increase of $50 per week per property, a significant average increase of 9% or $2,600 per annum in income for our clients.
It’s examples like these that demonstrate how our proactive approach to investment management can deliver greater returns and frankly if you’ve engaged a passive managing agent on a cheap fee it’s likely costing you thousands of dollars each year rather than delivering the saving your looking for.
If you think you might benefit from more information, we offer a portfolio review to prospective landlords that can really detail where your investment might be under performing and how we can assist you to achieve greater returns.