Yahoo Finance Why now is the best time to ask your landlord for cheaper rent
It’s good news for renters in Sydney and Melbourne: rental vacancy rates are rising, meaning there are more property opportunities for tenants.
Sydney now has the second-highest vacancy rate of all the capital cities, sitting just behind Perth, which has a history of supply outweighing demand.
And when there’s more choice, landlords are willing to drop your rental rates, Domain analyst Eliza Owen tells Yahoo Finance.
Where are rental vacancies rising?
Owen told Yahoo Finance that, based on sheer volume, rental listings are highest in high-investment areas.
In Sydney, that means Sydney CBD, Liverpool, Parramatta and Blacktown have a particularly high level of rental stock.
In Melbourne, suburbs close to the CBD, including Melbourne CBD, South Bank and South Yarra have rising vacancy rates.
South-east areas like Dandenong also have a surplus of rental properties.
What does this mean for me?
Put simply, it’s a good time and place to negotiate rent.
“The investment boom has created a surplus of rental stock, which gives tenants more choice and puts them in a position to bargain,” Owen said.
But don’t expect your landlord to come knocking at your door.
“We wouldn’t expect landlords to initiate that conversation,” she added. “However, we have seen anecdotal evidence of landlords offering the same rent for another 12-month period or 6-month period.”
But Owen said those seeking out new rentals are best-placed to get a better deal.
“We see renters getting the most value when they look for a new rental properties, because it’s easier to lower rents with new properties than it is on a current lease.”
But there’s one downside. “Renters would need to weigh up the cost of moving out with the savings they can make on new properties.”
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