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Published on April 9th, 2014 | by Chris Snell - Rental Success


Mining Boom Cools and Vacancy Rate Booms in Western Australia

1 in 5 vacancies due to broken leases 
According to an interview between the Residential Property Manager Online News, Tenants are leaving the rental market in droves as low interest rates and affordability present a true buyer’s market in Western Australia. Speaking to Residential Property Manager, president of the Real Estate Institute of Western Australia (REIWA) David Airey said the rental market was undergoing a period of pain. “Things are definitely slow, we’ve had a big increase in vacancies across the state due to the downturn of the mining boom,” he said. “The rental market is also suffering from tenants vacating properties in record numbers.” According to data gathered by REIWA, 20 per cent of all vacancies on the market are as a result of a broken lease, with the previous tenant becoming a first home buyer. The tenancy lease data gathered by REIWA is derived exclusively from members of the association and allows property managers to specify why the lease was broken. “We currently have a vacancy rate of 3.8 per cent, which means there are 4,500 properties available, an increase of 100 per cent from last year,” Mr Airey said. But Mr Airey said the market was due for a correction after booming for years. “We’ve had three years of extraordinary growth and owners are still enjoying good results from their investments, but I am expecting more pain before things begin to stabilise,” he said. Artcile written by Written by Steven Cross on Friday, 21 March 2014 http://goo.gl/omsdez shared by Chris Snell, Property Manager, Rental Success Blog

About the Author

Chris Snell is a licensed real estate agent and started his property career in 1992. Chris has experience in real estate sales and rental property management services. Chris has developed an excellent professional knowledge of all matters associated with rental property management and tenancy related issues. Chris manages a top tier property management company and aspires to educate property investors and landlords on the important aspects of rental success.

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