In June we experienced between 2-3 times the level of leasing activity compared to the same period in 2009 with reasonable turn-outs at rental inspections with the exception of the Queen's Birthday long weekend.
Our occupancy rate is currently at 98.7% compared with 98% for June 2009 and the average rent across our managed properties is $524/wk. This is up $46/wk or 9.6% from same period last year. Having said this, most of the increase in rent occurred in the first half of 2010.
Residential Tenancy Act Update
On the 18th of June the NSW parliament unanimously agreed to changes to the act and will likely be taking effect in late 2010. This will deliver some important additional protection for both property investors and tenants. Some of the items I want to bring to your attention include:
1) Landlords will be required to provide at least one free method for rent payment.
2) Property investors will regain certainty in seeking vacant possession of their premises.
3) Termination of periodic tenancies has been extended to 90 days notice, previously 60 days.
4) The eviction process for non-payment of rent will be sped up to 18 days.
5) Tenants will be supported in making reasonable requests to make minor changes to the property. BM - I am not at all happy about this! A minor repair does not include things like painting walls, which has been suggested.
6) Tenants will be supported in making reasonable requests to sub lease spare rooms. BM - This is something I believe the property investor should be authorising.
7) The proposal of a lease break fee. It was proposed that if a tenant wanted to break their lease during the fixed term, they could if they paid a set fee. I can advise happily that they have abandoned this and this will not be going ahead. This is really good news!
The Real Estate Institute of NSW is continuing to lobby against a number of changes including points 5 and 6 above. Fingers crossed; let’s hope that NSW government sees sense on these matters. As always please feel free to contact any member of our team if you would like any further information or clarification on these changes.
Focus Owner Online Portal Launch
Click here to take a peek! Later this month we are launching our owner online portal. We are the first privately owned real estate agency in NSW to offer what is the most comprehensive online facility in Australia!
This will benefit our property investors to the same extent that online banking did when it was introduced. Like online banking this will revolutionise the way we do business, with a whole host of benefits for our property investor clients. If you are a client you will soon receive some access details so you can get started.
Click here to see what it looks like and the sort of information that can be accessed along with how you can benefit.
Until next time, take care.
- Bernie Mitchell
