News & Events

With market rental prices starting to stabilise, it’s important for property managers to keep in regular contact with owners to manage rental expectations.
On 19 June 2019 the law regarding rent increases changed. Before that date rent increases could occur once every six months. Since that date rent increases can only happen once every 12 months.

However, for tenants on a lease that became periodic during that law change, owners could increase the rent every six months. If renters then signed a new lease on the same property this voids the option for twice yearly rent increases and they automatically go to once per year.

At Metro Property Management we are starting to see a shift in the Victorian market. Frequent media coverage about housing availability has meant we’ve likely seen the peak of the ability to push rents as high as possible. If anything, we’re seeing stabilising and rents even dropping a little. As a result of this it’s really important we manage expectations of owners in what rents they can achieve. This year we have seen more of a traditional flow where there is less movement in the market during winter months. During that time people are less likely to move and rents tend to stabilise. In summer people often move for jobs or to fall into a school zone. While in the past few years owners could significantly increase rents, now the market is stabilising and it’s less likely they can charge the same premiums.

Good property managers will always keep their owners up to date with what’s happening in their local area. This includes letting them know that vacancy rates are increasing and that it may take more time to lease a property. It may mean being reactive if the feedback is that people aren’t coming through the properties or there are not many, if any, applications. The owner may need to adjustment rental expectation to be able to successfully lease a property.
We manage more than 1400 homes in 260 suburbs in Victoria. Talk to Metro PM today to see how we can help you to manage your property and help set your investment up for the future.