How the Australian rental market has changed in 2021

The year 2021 may well be remembered for Aussies’ renewed love affair with houses. Renters are turning their back on apartments and queuing up to inspect free-standing homes in city centres and in regional areas.

Penelope Valentine, director at property management agency Property Alchemy, said the Sydney market was indicative of a nationwide trend favouring houses over units.

“We’re seeing a massive shortage of houses, and that’s pushing up prices dramatically,” she said. “Good houses … are being snapped up within a week of listing and, in some cases, they’re attracting queues of people.”

In the June 2021 Domain Rental Report, the national median rent for houses was up 5.9 per cent over 12 months, while the unit median fell 5.4 per cent over the same period.

Ms Valentine agreed the apartment market was still facing “a bit of downward pressure”.

“I think the fact that people are unable to move around and leave their local government area is a factor in that,” she said. “Apartments would generally take two to three weeks to rent; now it’s double that.”

Ms Valentine said COVID-19 continued to drive two key trends: the desire for a pet-friendly rental and a work-from-home space.

“A space people can call a home office or study nook is now essential,” she said. “We really make sure when we market a property to speak about what that space looks like. Everyone needs a space where they can work from home and take a Zoom call without excessive road or other noise.

“Also, people are desperate for pet-friendly properties, so we’re getting a lot more tenant inquiry on those homes,” Ms Valentine added.

Of course, regardless of how many wishlist boxes a rental property ticks, the pandemic can still throw an economic curveball our way, so it’s a good idea to understand your rights and responsibilities.

There are temporary support measures in place for tenants and landlords facing financial pressure as a result of COVID-19 lockdowns.

In Victoria, for example, if you’re a renter and your income has been reduced by 20 per cent or more, you can apply for a grant of up to $1500 if you meet certain eligibility requirements.

In NSW, if your income has been reduced by 25 per cent or more (after collecting any government payments), you can apply for a $1500 or $3000 rebate on your rent.

Valentine, who has fielded an increased number of rent relief inquiries this year compared to last, said there had been some confusion around these latest support measures in NSW.

“You can still negotiate to pay a reduced rent but you must pay a minimum of 25 per cent [of your weekly rent amount] and the rent you don’t pay must be paid back via a payment plan after they’ve met their threshold.”

To help keep track of rent agreements, some property managers, landlords and tenants have turned to the cloud-based app, Kolmeo.

A property management app that helps property managers, landlords and tenants streamline workflows, automate tasks and communicate, Kolmeo can be used for digital payments, maintenance requests and routine inspection bookings.

“Kolmeo tracks when payments occur, when they’re due or overdue, when maintenance work is booked in or if new people are brought into a lease,” said Kolmeo chief executive Scott Bateman.

The app helps keep tenants connected with property managers while maintaining physical distancing and allows property managers to work from home easily.

“The expectations placed on property managers haven’t changed during lockdown; if anything, they’ve become more complicated.

“So, the immediacy of information Kolmeo provides is a real win-win for both tenants and property managers,” Mr Bateman said.

During lockdown, routine inspections of rental properties are not permitted, but tenants can perform their own inspections and share the photos or videos with their property manager, who can then use Kolmeo to create the relevant reports for the owner or use it to begin repair or maintenance requests.

And should a tenant need to break their lease, Kolmeo also provides a platform to notify the property manager.

Terminating a lease early may mean compensating the landlord for any losses incurred, subject to state and territory regulations. In NSW, mandatory lease-break fees apply under legislation introduced last year, Ms Valentine said, which provides certainty around the costs associated with the early termination of an agreement.