Landlords feel the pain as Mantra and Oaks drop rents in market decline
Are you feeling the pain right now of declining rental returns from your investment property with Oaks, Mantra or similar short term/hotel pool leasing arrangements? With the international borders closed and continued stop and go measures on interstate border closures, the reality is that short term stays are in low demand and serviced apartments and hotel sector are suffering as a result.
The good news is that the long-term rental demand is climbing in the inner city for apartments, as long as the unit is presented well and priced to meet the market, it’s not difficult to find suitable tenants who are looking for homes in the CBD and surrounds. As the demand is steadily growing so is the expected weekly rent amount.
Leasing long term can offer a solution to the declining returns from short stay arrangement in this unprecedented market that we find ourselves in.
However, when the borders open, it doesn’t necessarily mean that you will have to then put the apartment back in the hotel pool, you can still keep good quality tenants in place, as with the short stay demand growing when more visitors in are in the city and this will drive higher returns; long term rentals will also have higher demand which in turn will lead to growing rents for long term tenants as well.
Some advantages to long term tenancies vs short term: – All applicants are vetted by property manager whereas no control who stays short term as booked anonymously with online bookings agents – Less heavy footprint than numerous quantities of check in and arrivals – 6 months lease is common and therefore able to increase market rent between tenancies – Many CBD renters are professionals who work in the CBD and are therefore high calibre tenants – If furniture package needs replacing, unfurnished inner city properties are desirable too, so no need to purchase
If you would like to hear more about how to transfer your short term property to long term lease and securing a suitable tenant, please email Ann-Marie at firstname.lastname@example.org to set up an appointment or call me at 0404 391 324. Always happy to help!