Toongabbie Area Property Investor Update February – March 2013
You may be staggered to know there was 31,839 matters in front of the NSW Consumer Trader & Tenancy Tribunal last year with tenancy disputes.
We keep an eye on the outcomes of many of these matters so we are able to provide you with relevant advice in all areas of the management of your property.
If you choose you can view a sample of cases heard at the Consumer Trader & Tenancy Tribunal at Consumer, Trader and Tenancy Tribunal of New South Wales
Our vacancy rate has stated stable at 1.2% this month, which is lower than the current average vacancy rate in Sydney Metropolitan area.
TENANCY TERMS – What is best: 6 or 12 months?
Sometimes the answer can be both or neither depending on your circumstances.
There are no laws stating that you must enter into a 6 or 12-month tenancy agreement term.
If the property is a long-term investment then the longer the tenancy term (1 to 2 years) the better as it provides you with security of a tenant, reduces wear and tear from multiple tenancy turnovers and will save you money in advertising, reletting costs and lost rent if the property remains vacant. However, if you are considering selling the property or are unsure of your future plans then a short-term tenancy of 6 months may be more suitable.
WHEN CAN NEITHER APPLY?
During the year the vacancy rate can greatly fluctuate.
There are peak times of the year when properties are in demand and other times where it can be more difficult to rent properties. By understanding the local market we can complement the tenancy term to coincide with high demand times of the year.
For example: A tenant is looking to move into the property on 15 June requesting a 6-month tenancy that would expire on 15 December, which is not the best time of the year for a property to become vacant. We would therefore request a 7-month tenancy.
If your property has a pool we also need to be mindful that the tenancy term does not expire during the winter months, as this may make it more difficult to rent the property, as well as possibly reducing the rent achievable in comparison to the rent you could achieve in summer months.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.