Getting a rental in 2022

The global COVID-19 pandemic fundamentally changed the way the property market functions. Property markets here in Fremantle and surrounds have well and truly woken from a near-five-year slumber, when supply and demand across both residential sales and rental markets were in relative equilibrium.

When COVID-19 related restrictions hit in 2020, it was reasonably anticipated that property markets would be adversely affected. Against expectation, sales took a brief pause then took off as supply tightened and buyers began to struggle to find suitable properties.

Uncertainty in the COVID-19 economy and fears over job security inspired would-be sellers to delay their selling plans. The results of shortened supply coupled with heightened demand is on display at home opens with multiple offers for property commonplace. Perth rents are at a six-year high, experiencing the fastest rate of growth in almost 15 years with a staggering increase of 21.6% to an average of $450 per week. Average days on market for sales are at 18-year lows.

This overt demand is across both the sales and rental market. Many would-be buyers, unable to find a suitable home, are opting to rent adding to this underlying demand. There is short supply of rental stock generally due to below average investor activity across Perth over the past five years. Investors try to buy in rising markets and normally make up about 27 percent of all buyers. Perth’s investor levels have been at 20 percent or less for several years now and developers have responded by delaying projects that deliver the much-needed rental accommodation.

Given you can’t build new homes overnight, especially with trade and labour shortages, this trend of short supply will continue for a while and will worsen if WA remains mainly COVID-19 free and our resource-led economy stays strong.

Perth’s vacancy rates remain historically low sitting at 0.6% in January 2022, a slight dip from 0.7% in January 2021. 2,305 rental properties were listed in Perth this week, with 2,768 listed this time last year.

Tenants are understandably stressed. In this market, when applying for a rental property, tenants must have all references, identification, proof of income and other necessary information completed and ready to have a chance of securing a property.

Tenants are well advised to apply within 24 hours of viewing a property too and should try and match their move-in date with the advertised lease-start date. Owners are mostly looking for longer term leases too so, if you can, try and lock-in at least a twelve-month lease.

A covering letter with your application that briefly explains your situation and why the property is ideal for you can also put your application to the top of the pile. Having a pet reference is also a good idea.

Most homes are renting for above the asking price nowadays so if tenants are looking for properties that are advertised at their maximum budget, then it may be necessary to reduce that budget and leave some in reserve for negotiation.

Finally, property managers act for their owners. Tenants that behave in a manner that openly displays their frustration are less likely to secure a rental than those who adopt a more conciliatory approach.