Earlier this week, Turner Real Estate CEO Emma Slape joined Marissa Schulze, Director of Rise High Financial Solutions, to discuss the impact of COVID19 on tenants and to provide some advice and guidance to landlords and property investors.
“Thankfully in Adelaide, the property market remained resilient,” Emma Slape said.
“The Adelaide property market is generally affordable for both the sales and rentals. The affordability of the market combined with the access to government schemes, JobSeeker and JobKeeper resulted in less financial hardship for tenants then predicted.”
“At Turner we only experienced 100 requests for rent reductions from the 2700 properties that we manage. As a result, rental arrears increased slightly however we expect that these will be back to normal levels by the end of the year. Due to the higher rental value of executive rentals, we have experienced that these types of properties are taking more time to lease, as these are less affordable options in the current climate.”
“Recently, we have seen an increase in tenants and landlords wanting to renew their leases instead of finding alternate occupants. Tenants, who are potentially cautious about their budget, understand their current situation and are happy to continue in their residence. Whilst landlords are equally happy to have secured income. We do predict the market will see a spike in demand next Summer for properties as tenants chose to find new accommodation.”
“Rental prices have not increased and we do expect for these prices to steady for a while as the economic situation remains. However, it is not expected for rental prices to decrease, so this can provide some security to those considering starting their investment portfolio.”
“The sales market has remained steady. Initially there was aversion with going to the market from those who were preparing for sale. We are now experiencing a shortage of stock, whilst buyers are still present and seriously wanting to purchase.”
“This has created an increased level of competition for some types of properties. Properties currently in high demand are family homes, we are noticing this in both the sales and rental markets. Whilst the unit market is much quieter than usual, investor confidence did decrease but we believe they are starting to regain confidence.”
“Finally the impacts of Covid-19 have really reinforced to landlords and potential landlords of the importance of partnering with a good quality Property Management agency who have the ability to have the tough conversations required in the current market and also have the experience, skills and relationships to negotiate the best prices for you such as landlord insurance.”
If you are wanting a trusted team that will give you sound advice, with a track record of results for thousands of clients, please contact us.
Article by Emma Slape
Chief Executive Officer
Emma leads the team at Turner Real Estate with energy and passion, committed to the company vision of providing client service that sets the organisation away from the crowd. Actively involved in the day-to-day operations, Emma is always looking for new opportunities to keep evolving the business and setting new… VIEW PROFILE