We have just come through an usually slow period for leasing of vacant rental properties. Through late March and April there was a steep rise in vacancy rates right across inner Brisbane – a big change from this time last year. With this in mind and in order to try and get a handle on what’s motivating tenants to vacate rental properties we have surveyed all our outgoing tenants since the beginning of 2014.
There has been talk in the media that vacancy rates are rising as a result of tenants purchasing however our survey seems to contradict this, as only 6%, the lowest amount in the survey moved for this reason. At 28% the prime motivation for tenants moving on was as a result of changes in a share house scenario. Next up was relocation for work reasons at 20%. This is perhaps an indication of the slow down in the mining boom in Queensland.
The two other main reasons at 18% were due to owners moving in or selling, and properties not being suitable for tenant’s specific needs anymore – perhaps as a result of them starting families etc. Second from last at just 10% was as a result of the affordability of the rent. Perhaps this is a good indicator that landlords are not raising rents if they have secure tenants in place. Check out the chart below for a full list of the reasons: