The rental market is projected to stay constricted because housing stock is struggling to keep up with demand. Especially given how leases have been trending towards shorter terms and renters are staying longer, vacancy rates have been affected considerably. 

PropTrack reports note that properties are being leased faster than they were prior to the pandemic, as the number of renters searching for homes has increased relative to the availability of spaces. The decline in turnover may be due to renters choosing to stay in the properties for much longer, as advertised rents have risen quicker than overall rental rates.

Despite these supply and administrative challenges, finding a rental property still needs to be a careful, needs-driven process. You should still prioritise your must-haves, and shouldn’t feel like you have to give up security, amenities and other important features that make up the right rental property for your lifestyle.   

What does a tightening market mean for renters? 

Rental prices are up and vacancy rates are low, so you need to balance your needs, budget and the options available.

Properties across the country are being rented out quickly. In major cities, rental properties experience intense competition, with high demand and limited availability. Renters and prospective renters in Melbourne are feeling the brunt of this pinch, with the rates of homes available for rental practically stuck at the same levels for months according to PropTrack:

• 1.41% of rental homes are available for tenants
• A typical house outside Melbourne costs about $445 a week
• Unit renters now pay an average of $350 a week

Despite these troubling observations, renters should still put together their options while keeping in mind the non-negotiable characteristics of their ideal rental. Aside from that, it’s important to be mindful that the factors you’re willing to trade off don’t compromise your safety or security–because you may end up taking on more challenges than you bargained for. 

3 tips to find the right rental during a tight property market

The market may be more difficult to navigate for any renter at the end of their lease or looking to move closer to where they need to be, but this doesn’t mean that you have to disregard all that and sign the lease for the next available unit that you come across. We’ve shortlisted a few tips that you need to consider including in your action plan for finding the right rental.

1. Draw up your list of requirements

You still need to keep your standards up but don’t be afraid to get creative about the other aspects of your rental that you’re willing to compromise.

Given how challenging it’s gotten to find a property to rent within your budget, it can be tempting to overlook some glaring issues that would’ve turned you away immediately if market conditions were different. As an example, Consumer Affairs Victoria outlines some of the following minimum standards that renters still need to keep in mind while looking at listings:

• Security (e.g. locks). Entry doors need to have functioning deadlatches or be fitted with locks that can be unlocked with a key from the outside, but can be unlocked without one from the inside.
• Electrical safety. Rental properties are required to have modern-style switchboards, with circuit breakers and electrical safety switches installed. These safety switches are known as residual current devices (RCD, RCCB or RCBO). Your rental provider is required to engage a licensed electrician to meet this requirement.
• Structural soundness. The property must be weatherproof and structurally sound.
• Mould and damp. Every room should be free from mould and dampness, especially if it’s caused by or related to the building’s structure.
• Sanitation (e.g. vermin-proof bins). Providers need to have rubbish and recycling bins available for renters on the property and these bins need to be vermin-proof.

Assuming these requirements are met, you can be left at a loss for ways to personalise the space and spruce it up while staying within your budget and regulations for improvements. A few design modifications and thoughtful touches around your rental can make a difference:

• Get some houseplants. Including houseplants is a relatively inexpensive way to bring the outdoors in, and introduce vibrant colours into your rental space,
• Level up your storage system. Efficient sorting of the objects you reach for daily versus the specialised equipment you only need once in a while and using shelf inserts, baskets and other organising aids can help customise the space, and
• Improve your light fixtures. Adding floor or table lamps can help better reflect your style in the space without dealing with any renovations or changing overhead bulbs.

This way, when you know what you absolutely need in your rental, you can be flexible about the other features that are often relatively easy to resolve when you know how to get started.

2. Be open to living in different locations

Depending on your needs, you may want to stick to the areas you’ve lived in before or could be closer to familiar locations. When properties in these neighbourhoods are less accessible, you may be stumped by the considerable cut to your shortlist of options for properties. This preference could severely limit your horizons and keep you from finding the right rental.

Being open-minded about the locations for your next rental allows you to not only find the space you need but also to discover the local culture that you might have not been able to interact with otherwise. Even veering just a street away from a popular neighbourhood can be an enriching experience. 

One example is West Footscray; eight kilometres from the central business district, with a friendly atmosphere, plus an eclectic community and shopping area, this neighbourhood has slowly become a standout property player in Melbourne. Depending on your lifestyle, staying off the beaten path and seeking out locations like this one could spell the rental you need.

3. Consult a real estate agent

Doing everything by yourself can quickly become stressful if you’re in a tightening market. 

Aside from closing the sale, real estate agents are most equipped to offer advice about the area, condition and other industry-related considerations that they often know better than the average renter. Real estate agents know that these red flags are signs of larger problems:

• The price is too low. Rental rates are going up around the country, so it can be tempting to seek out the cheapest option, but you could be paying for substandard facilities and potentially hazardous surrounding areas. 
• It’s been renovated multiple (in some cases too many) times. Things like a fresh coat of paint may make it seem like the provider took pains to brighten up the space for new renters, but that same coat of paint can just as easily be hiding a multitude of issues like mildew, water damage or mould.
• Vague descriptions and missing photos. Descriptions with exaggerated claims and stretched or pixelated photos are red flags. Additionally, if there are more photos of the surrounding area than of the actual property, then there’s a big chance that the provider is trying to hide major problems with the property itself.

Real estate agents keep note of these and other signs of a property dud, which renters may be unable to spot themselves. With the bulk of rentals they’ve seen in their broad experience, real estate agents know when the property you’re looking at is too good to be true and know where you can get the most value for your money as a renter in an increasingly tough market.

Whether you’re moving for work or finding a property to rent closer to your children’s schools, you can still find a rental if you plan carefully and keep your options open, while you continue keeping in mind what features you need the property to have so it works for how you live.  

It’s entirely possible to find the right rental even when it seems like you have to bite the bullet and sign a lease for whatever space comes up. You don’t need to compromise the features you need to rent a safe and secure property. Contact us and we’ll set you up in a rental that makes sense for your lifestyle.