A key aspect of owning rentals in Adelaide is setting the most suitable price. Getting the rent price right can support your investment venture in the long term and even improve the likelihood of attracting and retaining tenants. Over the life of your rental you'll need to increase the price, but new research from CoreLogic RP Data suggests you might not need to do this too frequently.
CoreLogic has released its Quarterly Rental Review for the three months to March 2015. The report has uncovered that nationally, rises in advertised rents have remained relatively moderate compared to their house price counterparts. However, figures from across the combined capital cities show that rent prices have grown just 1.2 per cent for both houses and units in the March quarter.
Melbourne, Canberra and Sydney recorded the strongest price increases for houses over the quarter, rising 1.3 per cent, 1.1 per cent and 1 per cent respectively. While growth may be slow, Adelaide's market has remained encouragingly steady. Darwin was the only city out of the combined capital cities to see a drop in rents for houses and apartments in the last quarter. Lessee payments in the Northern Territory capital plummeted 1.6 per cent for detached homes and 5.5 per cent for units.
While the March quarter recorded more a higher rate of growth when compared to the figures from the past year or so, CoreLogic analyst Cameron Kusher said the improving level of new home building is providing a buffer against rapid rental growth.
"With new housing supply increasing and investor purchasing at record highs we have seen a significant slowdown in the rate of rental growth over the past couple of years and we expect this trend to continue over the coming year," he said.
This is a sound reminder to seek advice about managing your property portfolio, particularly when it comes to selecting or increasing rents. For reliable advice and a wealth of knowledge about property management in Adelaide, contact the real estate professionals at Ray White.