Rental prices are on the rise again. Here is what to do

Apartment rental prices are rising at the same rate as house rents for the first time since the pandemic, a warning sign that tenants are flocking to CBDs and apartments for affordable prices, new data reveals.

Last rental report for the domain found that house and unit rents both increased 2.5% in the September quarter.

Unit rental prices in Sydney and Melbourne rose for the first time in more than a year between July and September, the report revealed. During the same three-month period, house rental prices in Sydney, Brisbane, Adelaide and Canberra hit an all-time high.

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Economics and Research Chief Nicola Powell said tenants were put off by rising house rental prices and were considering apartments for their new home.

“We are seeing tenants in cities such as Sydney, Melbourne, Canberra and Brisbane starting to view apartment living as an option exemplified by increasing unit rents, driven largely by affordability,” said Powell.

However, the Covid-19 pandemic has changed what Australians want in a home, with lockdowns and the ‘new normal’ of remote working leading to increased demand for space.

“In some cities, it is clear that tenants are willing to pay extra for the space they need for their lifestyle, as house rents peak and increase at a faster rate for rentals with more rooms. “, added Powell.

Meanwhile, Melbourne home rental prices are the lowest of any capital city, with several long lockdowns chasing residents of the state, resulting in weak rental growth.

The good news is Melbourne tenants can take advantage of the lower prices, according to Powell.

“This is a good sign for tenants who want more space and now is the time to negotiate the asking rents to get a good deal.

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“However, we have seen vacancy rates continue to decline, suggesting that the empty rental pool will continue to shrink and rents will not stay that low any longer.”

How to hang on to your low rent

Moratoriums on evictions were put in place at the height of the pandemic to protect tenants who had lost working hours or their jobs from being evicted from their homes.

The federal and state governments have also encouraged landlords to work with tenants to negotiate lower rates or payment plans.

However, as unit and apartment rental prices rise again, experts are reminding Australians that there are tips and tricks they can use to keep rental prices low.

For starters, Australians hard hit by the pandemic will still be able to negotiate a payment plan until November 11 due to the moratorium, RateCity research director Sally Tindall said.

“The key here is to have regular, open conversations with your agent and your landlord to make sure they understand the financial difficulties you are having. NSW landlords can potentially apply for financial assistance for a reduced rent they are offering to their tenants affected by COVID, ”Tindall said.

Sydneysider TikTok user Shirley Liu revealed how she used one to reduce her rent from $ 650 to $ 400.

Under NSW , landlords who reduce their tenants’ rent will be compensated by the NSW government up to $ 3,000.

The other thing is to do your due diligence and make sure you understand the rent amounts for similar properties in your area.

Often it comes down to supply and demand, she said. “So if you can prove that there are a lot of affordable options nearby, you might be able to avoid a rent increase. “

Your landlord will likely want to keep you if you’re a good tenant, as finding new ones is a long and expensive process that will result in lost income for the landlord.

“Consider taking a longer lease in exchange for a small reduction in rent. It’s a win-win solution for the landlord who won’t have to find new tenants regularly and you will have fixed rental fees for a longer period, ”Tindall said.

But if you’re not able to keep those rent increases at bay, you’ll have to think about other ways, like considering another roommate or renting out your car space.

Then if that doesn’t work, you may have to look elsewhere for more affordable areas with a higher offer to keep rent rates low.

“While moving can be an expensive exercise in itself, it is a one-time cost that can often be better than overworking yourself week after week by paying more in rent than you can afford. “

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