Daylight saving has started in most states, which means we’re heading in to the annual tenancy go-round.
As experienced landlords know, summer is often the time of year when tenants decide on a change. Be it students ending their academic year, young singles wanting to up the summer pace by being closer to bayside and beach areas, or professionals taking the opportunity to upgrade their current location. It’s a bit like a documentary from the famous naturalist David Attenborough, the three months of summer are the traditional tenancy migration period.
As a landlord this can mean winners and losers. Tenants move out of one property and in to another. This year, however, we expect several large off-the-plan developments to be signed off, ready for occupancy in the lead up to Christmas. This will mean increased competition in several markets, especially for “used” apartments. Off-the-plan apartment investors of just two or three years ago can lose out in the migration period as their tenants seek the latest, almost identical, fresh new batch of apartments to live in.
For traditional housing the annual tenancy go-round has a lesser impact. As an investor of an inner city house or period-style apartment the demand is usually steady as often these tenants prefer to stick with this type of housing style. At the same time, the pool of new tenants for these properties often increases from people relocating from outer areas and smaller apartments for lifestyle and amenity reasons.
Until next week