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Apr 3, 2024
How to choose the right Perth property manager
If you own an investment property in Perth, you’re in a prime position to maximise your rental yields and capital growth in this market. To ensure you’re capitalising on this opportunity, it’s crucial to enlist the services of an experienced property management team. Here’s a guide to selecting the ideal team for your investment success: What makes a good property manager? Before committing to a contract, make sure your new property manager ticks the following boxes: They have industry knowledge: A property manager should eat, breathe and sleep Perth real estate and have a wealth of experience. This depth of understanding is crucial as it ensures that they have a clear understanding of the legal requirements of leasing a property and be across updates and changes to regulations. Understanding the law can make a big difference between a positive and a costly experience as a landlord, which is why it’s essential to work with an experienced property manager. They know the area: A quality property manager’s knowledge also needs to be local. When they’re familiar with the postcode your property is in, they can provide a more accurate price estimate and they know what to highlight to potential tenants. Mount Lawley, for example, is a great spot because it is close to the city, ECU and home to the popular Beaufort Street shopping/restaurant strip. They can identify a quality applicant: You should be able to rely on your property manager to vet applicants for your rental property and lock in reliable tenants. This means reviewing all aspects of an application and doing due diligence by speaking with employers, checking references and following up social media profiles. They are always responsive: The best property managers don’t leave you waiting days for a response, especially if there is an urgent situation. Their commitment to timely communication extends to your tenants, fostering a relationship built on respect and reliability. This translates into longer tenancy durations as tenants feel valued and cared for. They will be a master of documentation: A lot of paperwork is involved in rental housing, especially at the beginning and end of a tenancy. A quality property manager will ensure everything is signed and held securely. They will also contact you ahead of time as your rental contract comes to a close so you can make decisions about your investment property. When you work with an expert, you’ll also be kept up to date with strata fees, water and council rates and other costs, and be provided with detailed statements to share with your tax accountant at the end of the year They care about your outcomes: Many property agencies overload their property managers, which results in a lack of service as they find themselves stretched thin to meet the basics of their job. Working with a boutique agency like D Residential Group we ensure there is time to manage your property successfully offering a customised approach to suit your investment. How to find the right property manager in Perth. In early 2024, rental vacancy rates in Perth sat at around 0.7 per cent. This means property investors have a good opportunity to find tenants willing to pay a premium, especially in popular suburbs in and around Mount Lawley, Mount Hawthorn, West Perth and North Perth. To share some snapshots: Mount Lawley’s rental vacancy rates are around 0.95%, and 29.86% of its occupants live in rental accommodation. Mount Hawthorn’s rental vacancy rates are around 0.44%, and 23% of its occupants live in rental accommodation. West Perth’s rental vacancy rates are around 2.24%, and 46% of its occupants live in rental accommodation. Mount Hawthorn’s rental vacancy rates are around 0.91%, and 26.3% of its occupants live in rental accommodation. If you’re looking for a property manager in one of these areas, ask your shortlisted candidates about the local market statistics. Check how many properties they look after in the area and talk to them about the kind of tenant they will let the property to. Have a discussion about the amount of rent they believe your investment can achieve and how you could potentially increase this now or in the future. Check your Perth property manager’s reviews on Google and look out for what tenants say as well as investment property owners. This will give a clearer picture of the overall experience they deliver. Do you need a property manager for your investment property? Contact D Residential today.
Mar 5, 2024
Beat the competition when investing in Perth
It’s no secret that Perth has become the go-to Australian city for property investors. Locally based buyers now have the added headache of competing against people from all over the country and even around the world in what is already a tight market. If you want to beat the competition and buy property either as a home or as an investment, you need professional support on your side. Perth’s property price trajectory Since the pandemic, Perth has built its reputation for affordability and growth. It experienced several sluggish years but is now catching up to the rest of the country. Throughout 2023, the city’s property prices rose a whopping 15.2 per cent, comfortably above the next highest performer Brisbane at 13.1 per cent. However, despite the growth, median house prices in Perth sit at $660,754. Compared to Melbourne, where the median is $780,457 or Sydney, where it’s a whopping $1,128,322, Perth remains reasonably affordable. Being cheaper than other capitals has made Perth an obvious target for investors who are now competing with interstate and overseas buyers. The added challenge is a lack of stock; while developers and construction teams are building new properties, there is a shortage of quality homes and investment units in the most popular parts of the city. Your secret weapon for a faster Perth property purchase Because of the lack of stock and increase in competition, buyers are finding they need extra help, in the form of a buyer’s agent. This expert is a real estate professional who gives buyers the edge over the competition by acting on their behalf. When you work with a real estate agent, their primary client is the seller. They will give you some advice but their main interest is to achieve the best price possible for the owner of the property. On the other hand, a buyer's agent works only for you. Their job is to help you nail your ‘brief’, find a home and make it your own, sooner rather than later. According to Perth buyer’s agent Ray Chua, when you want to buy property in Perth, a buyer’s agent will help you to “save time in the research phase and get your weekends back. This expert will save you money by using strong negotiation techniques, while helping you to avoid the amateur mistakes that someone who doesn’t transact much in property may make. Most importantly, your buyer’s agent will help earn greater returns by selecting a better quality asset than you may otherwise have done by yourself.” How to stay a step ahead of the competition Buyer’s agents know the Perth market inside and out. They have the right knowledge and the right industry connections. One of the major benefits of working with a buyer’s agent is they have access to off-market listings. This means they can get you in to see properties that have yet to be widely advertised. As Ray explains, “There’s nothing wrong with looking at online listings since they are generally genuine sellers, but there’s a large pool of discretionary sellers, who would sell but have chosen not to, mainly due to not having enough certainty around where they would move to. Buyer’s agents can create mobility by working with a seller who isn’t really being proactive about moving on from their home. We give them more time to find their next home, and create a buying opportunity for our existing clients.” Your buyer’s agent will keep you that step ahead by staying connected with a network of real estate agents. They can find out what’s about to come onto the market before it does, helping you access the property ahead of the first home open. They can also negotiate on your behalf. “We ask the right questions and use our rapport and relationships with local agents as leverage to get a better deal,” says Ray. Make a smarter investment Perth may be booming now, but anyone who has followed real estate in the West knows that the market has clear high and low periods. The last thing you want is to buy property and end up with an investment you can’t lease out for the long term. A buyer’s agent has the skills to ensure you buy the right property in the right area so you will always find tenants and keep your rental income flowing. The final advantage of a buyer’s agent (and one that is similar to having a good property manager) is the network of professionals they are connected with. Ray explains that his business has “the benefit of trialing and testing various companies and keeping the best ones for our clients to use. This includes accountants, financial planners, mortgage brokers, property managers, building inspectors, reliable tradesmen and conveyancers. Property investment is like a team sport, and you need to surround yourself with the right team members to win the game.” Need a buyer’s agent to help you finally secure a place in Perth? Contact us today Already made your purchase? D Residential can provide quality property management tailored to you Find out more.
Feb 19, 2024
Investing in Perth: Why use a Buyers Agent?
At D Residential, we help property investors by managing their property and tenants, but we often find ourselves part of the purchasing journey as well. It’s no secret that Perth property is in demand right now, with our city constantly in the headlines as the nation’s fastest-growing capital. If you live interstate or overseas, you have probably realised that there is a great opportunity to secure a cost-effective investment property with capital growth potential and no shortage of quality tenants. To make a smart purchase without travelling to Perth to view properties in person, many investors hire buyer’s agents. But how can a buyer's agent help you? We interviewed Perth-based buyer’s agent Ray Chua to get a more in depth understanding. What is a buyer’s agent? A buyer's agent is a qualified real estate professional (either licensed or working under a licensee), who is engaged to act on a property buyer’s behalf. Real estate agents have a duty of care to a buyer but their loyalty is to the seller. A buyer's agent works exclusively for the buyer and represents their best interests. Hiring a buyer’s agent provides you with professional guidance to navigate the tricky process of finding the right investment property or home. Using their insight into the market they assist you in finalising your offer increasing your chance of being a successful bidder. Your Perth buyer’s agent can work with you to bid at auction or negotiate via private treaty. If you’re not from the area, they can view the property on your behalf assessing the properties qualities and ensuring any concerns are disclosed to yourself. How is a buyer’s agent different from a property manager? Perth buyer’s agent Ray explains while buyer’s agents and property managers work under the same qualifications, their roles and functions are quite different. “Property managers are more focused on assessing the rental value of a property, advising how to maximise the asset value, overseeing tenant selection and taking care of problems that may arise on behalf of a property investor." “Your buyer’s agent’s skills are more focused on understanding the local market dynamics. If you’re a home buyer, you can get the best home within your budget with confidence because your buyer’s agent has ensured it meets your personal needs and stands as a great asset to own. When a buyer’s agent works for a property investor, it’s about understanding what type of property would suit the buyer holistically and facilitating the best chance of experiencing capital growth and consistent rental income.” Why you need a buyer’s agent if you don’t live in Perth When you’re an out-of-town buyer, you don’t know what you don’t know. Like any city, different parts of Perth have different appeal and drawbacks. You not only need to get the right deal, you need to purchase in a location that suits your tenants’ needs. For example, a student-friendly apartment should be close to train or bus stops, or walking distance from the local university campus. Liaising with real estate agents might help you find a place, but remember that they are pushing for the best outcome for their owners. A buyer’s agent can bring detailed market understanding to the table. As Ray explains, “It takes local understanding to determine the factors that go into selecting the right property for any given suburb. Your buyer’s agent knows what people want.” Buy a Perth investment property without the stress According to Ray, “Property investment is like a team sport, and you need to surround yourself with the right team members to win the game.” Before you invest in Perth, take the time to build a team of specialists to support you in your purchase. You’ll have financial advisors like your accountant, financial planner and mortgage broker. Then you need experts to help you lock in the right place and maximise long-term returns. A buyer’s agent and property manager will fill these roles. Looking to invest in the Perth property market and need a buyer's agent? Reach out, we have the best network of specialists to help you navigate the Perth market. Need a quality property manager once you have made your purchase? D Residential is ready and waiting to help.
Jan 8, 2024
2024 Perth Rental Property Predictions
2024 has arrived and many WA-based property investors and owners are wondering if we will see another year of big performance figures. Take a look at what happened to Perth property prices during 2023 and what the experts are predicting for the year ahead. Looking back: Perth property in 2023 Property prices were generally strong across Australia in 2023, with CoreLogic reporting a nationwide Home Value Index (HVI) rise of 8.1 per cent. When the statistics are broken down by capital cities, Perth outperformed the others, with a 15.2 per cent increase. In September 2023, Perth home sales reportedly hit a 30-year low. Meanwhile, the relatively low prices (compared to east coast cities like Sydney and Melbourne) saw investors from interstate and overseas circling. One of the benefits of investing in Perth is that you can choose a premium suburb that’s close to the CBD and get a lot more for your money than in other capital cities, or identify a more cost-effective pocket that is set for excellent growth (we can share some advice if you’re not sure exactly where to invest). One of the benefits of investing in Perth is your money can afford you something closer to the city or within proximity of desirable suburbs for prices that are affordable By October, increased demand and lack of supply saw new records; the median house price in Perth crept over the $700,000 mark for the first time. Meanwhile, Perth holds the current title of Australia’s tightest city rental market, with rental vacancy sitting at 0.7 per cent. Perth suburb performance Overall growth and higher-than-ever prices have been witnessed in almost every postcode, especially in more sought-after parts of Perth. Taking a look at the suburbs where D Residential operates, owners and investors saw the following results: Leederville: Leederville had a great year with positive growth. It is now sitting on a median house price of $1.12 million. Median rental price: $800 per week. Mount Hawthorn: While Mount Hawthorn home values settled slightly last year, the median house price is still an above-average $1.2 million. In this suburb, rental growth is up by 13.6 per cent. Median rental price: $750 per week Mount Lawley: A 9.1 per cent rise in sales growth saw Mount Lawley reach a median house price of $1.3 million in 2023. Median rental price: $800 per week Glendalough: Glendalough’s median sales price settled this year to $610,000. but the suburb saw the rental prices increase. Median rental price: $550 per week. Joondanna: With its significant number of villas, townhouses and units, Joondana’s median price is sitting at around $790,000, after rising 7.5 per cent in 2023. Median rental price: $650 per week. If you have an investment property that is leased to tenants in one of these suburbs and the lease has expired or is about to, get in touch with our team. You may be able to update the rent to more closely reflect the local average. Perth property: the year ahead If you’re an investor, there’s good news. Perth property prices are expected to continue growing at a steady rate throughout 2024. Even with interest rates set to remain high, experts are predicting a good start to the year and annual growth of around 8 per cent. The continuing supply issue, combined with enthusiasm from out-of-area investors looking to avoid new taxes being introduced in the eastern states will fuel the fire, making Perth homes hot property throughout the next 12 months. Perth landlords are expected to be able to offset high interest rates this year thanks to limited availability and rising rental yields. Vacancy rates reached record lows of 0.3 per cent during 2023 and are yet to break the 1 per cent mark, so competition remains high with quality tenants readily available, who have the ability to pay well. Act fast for the best capital gains If you’re looking to buy an investment property in Perth in 2024, competition will be tight but the anticipated returns definitely make it worth it to take action. Home values are almost certain to grow in value during 2024 but if you want to maximise outcomes for the long term, you need to make sure you have quality tenants and a reliable property manager. Looking for the best property managers in Perth? Contact D Residential today.
Nov 7, 2023
Preparing your property for professional photos
As a landlord, you understand how important it is to present your rental property in it's best possible light. One way to do this is by investing in professional photography. By showcasing high-quality images, you stand a better chance of attracting prospective tenants. But how can you prepare your rental property for professional photography? Here are some tips and tricks: 1. Tidy up and declutter Make the space you are photographing look as clean and tidy as possible. Remove any clutter that might look distracting in photos. Clear countertops, shelves, tables, and floors as much as possible. Following the philosophy of "less is more" can make the space feel bigger and more inviting. 2. Use natural light Optimal lighting is always the preferred approach when capturing photographs. Opening blinds and curtains to let natural light in is an effective way to show space. If natural light is not available, consider bringing additional lighting to properly illuminate areas that may be dim. 3. Dress up the space Style your property as you would for a open home showing. Add items such as fresh flowers, pillows, or additional props to help enhance the décor. Cute dining settings, staged seating areas in the living room and so on. This is to show prospective tenants how they can utilise the space and helps them visualise their future home. 4. Take exterior shots The exterior of your rental property is the first thing prospective tenants will see. Ensure the front is trimmed, weeded, mowed and organised before photographing. Aerial photographs and photographs that focus on your property’s standout features such as a pool, outdoor fire pit or BBQ area, can provide great selling points to your property. A well-designed and thought-out photoshoot of your rental property is an investment. It can attract the right people to your property and increase your rental yield. You only get one chance to make a first impression, so make sure you take the time to showcase the rental property in the best possible way.
Oct 10, 2023
Solving the Rental Crisis: Capping Short-Stay Accommodations
The nationwide rental crisis has raised questions about whether imposing limits on the use of short-stay accommodations could offer a solution. However, statistics suggest this may not be the answer. The Statistics According to the Real Estate Institute of Australia (REIA), in the March 2023 quarter, Western Australia had a total of 10,091 short-stay accommodation. Of these, 47.3 percent were in Perth, with the remaining 52.7 percent located in regional WA. This number represents only 0.4 percent of total dwellings in the Perth area. Further analysis from the REIA reveals that out of these properties, only 8,056 across Perth and regional WA are suitable for long-term rentals. Cath Hart, CEO of REIWA, suggests that to achieve a balanced rental market, we would require an additional 18,000 to 20,000 rental properties. Considering these statistics, it becomes apparent that while limiting the number of days property owners can use their properties for short-term accommodations might bring more properties into the long-term rental market, not all owners are likely to make this transition. For instance, consider the FIFO worker who leases their property between stays or the family who owns a holiday home who leases it when they aren’t using it. These individuals won't necessarily make the switch regardless of the outcome. Moreover, the properties made available for long-term renting may not necessarily align with the preferences and budgets of prospective tenants. Short-term rentals, such as those found on Airbnb, often occupy prime tourist destinations, where rental yields are higher. This may not be feasible for tenants seeking more affordable accommodations. What is the problem? It's essential to recognise that short-term accommodations are just one facet of a complex issue that has led to the rental crisis. Several factors contribute to low vacancy rates and housing shortages, including: A reduction in government housing Building delays Population growth Decreased investor participation Increased immigration Changes in shared housing dynamics Land development delays Bureaucratic planning approval processes Blaming short-term accommodations simplifies a much broader problem. Solutions Potential solutions include the Albanese Government's commitment to a $10 billion Housing Australia Future Fund, aimed at funding social and affordable rental housing. While this is a step in the right direction, in the short term this is only 30,000 homes over the next five years. These homes will likely only scratch the surface while the issue continues to escalate. Incentivising investors back into the market is likely to have the largest impact. However, it's essential to acknowledge that with limited property availability, constructing new dwellings might become the only viable solution. This could exacerbate issues in the already strained construction industry, causing further delays. Unfortunately, there are no quick or straightforward solutions to the rental crisis plaguing our nation. With record-low vacancy rates, the market may deteriorate further before improving. Addressing this crisis necessitates a multifaceted approach that considers the various factors at play and combines short-term measures with long-term planning.
Sep 6, 2023
5 reasons why your rental application may be refused
Perth landlords are spoilt for choice at the moment and this can make things difficult for people who are looking for properties to rent. At D Residential, we often hear from applicants who are frustrated to have missed out on a property. We often have many applications for each home, rejections are never personal. More often than not, it will be because there are one or two criteria that have not been met. If you are looking for a rental property in Perth, here are some insights into our process. Tenant applications: 5 reasons why your rental application may be refused 1. Payment history Property managers have access to an applicant’s rental history. If we see that someone has struggled to pay their rent on time in the past, we are likely to move on to the next applicant. An exception may be if there is an explanation offered and evidence that late payments were a one-off, not a trend. Before you apply to lease a home, do what you can to make sure you don’t have a history of missed rental payments, especially in recent months. 2. A negative listing on a tenancy database Tenancy databases are a collection of information compiled by private companies that list the quality of rental tenants. In Western Australia, a person can be ‘blacklisted’ as a tenant and added to the database if they have breached a tenancy agreement, and: A court has made an order terminating the tenancy agreement; or After the tenancy has ended, the tenant owes the property owner more than the security bond will cover If you are applying for rental properties and you need to get around this issue, contact your former agent or landlord and find a way to discuss the matter. You may need to pay outstanding bills or, in a worst-case scenario, take the matter to court. 3. Previous inspection reports Tenants can expect regular rent inspections while they rent a home as well as a final exit inspection. When reviewing applications your new property manager will ask for records from your previous property manager or landlord including your most recent routine inspection. If you can share a history of positive inspection reports, it will add to your application. 4. Inaccurate or unreliable references If your references don’t check out; you will miss out. Written references are helpful but a property manager will usually confirm your references by making a phone call. Before you leave your current place, ask the landlord or property manager if they are happy to provide a reference. If they are expecting a call, it makes things easier for everyone. Do the same at work as a property manager will call your workplace to double check that you work there. 5. Incomplete application forms At a time when Perth rental vacancies are low, tenants need to be diligent when filling out application forms. Missed sections mean we have to follow up, so we look for the forms with everything filled in correctly to save time. Double-check before you hit submit! If there are dozens of applications and you haven’t filled out all the right information, you will put yourself on the back foot. Talk to us today At D Residential, we take extra care in selecting tenants so that relationships last longer and everyone has a positive experience. If you have been consistently missing out on homes, double check you meet the above criteria, update your application process and try again. If you would like to know more about renting through us or leasing your property in Perth? Contact our team today.
Aug 8, 2023
Discover D Residential: Who we are and what we do
Investing in property is an excellent strategy to build wealth and create a more secure future, but you need the right support if you want to avoid the potential pitfalls. At D Residential, we provide a boutique property management service that delivers a better experience for our clients than larger agencies. Take a look at our ‘origin story’ and find out why so many investors are choosing D Residential to manage their property assets: Our beginnings The D Residential story starts with Founder and Director Diana Patrascu. After building her career in the real estate industry over a 19-year period, Diana was inspired to create a business that did things differently by focusing on property management. Instead of splitting her brand between real estate sales and rentals, Diana directed her energy into ensuring Perth landlords and tenants experience quality service and customer care. She wanted every client to feel like a priority, not an afterthought. Many property managers are stretched so thin that they are unable to provide timely responses to urgent matters. Diana’s desire is to lead a team that helps in as meaningful a way as possible means she is focused on quality rather than quantity. As a boutique agency, D Residential are able to provide a higher level of service and personalised attention. D Residential’s focus is to provide a different experience when it comes to property management, one that exceeds expectations. Initially specialising in the Mount Hawthorn area, the team has expanded and so has our portfolio to include Mount Lawley, Menora, North Perth, Leederville, Coolbinia, Inglewood, Menora and their surrounding suburbs. Our property management services Operating mainly in and around Mount Lawley, Mount Hawthorn and North Perth, we specialise each property management package to suit our clients' wants and needs. Our services include: Rent collection Market research Lease negotiations Arrears control Advertising and marketing Property viewings Property condition reports Final bond inspections Tenant application management Expert property advice Maintenance and repairs Compliance with legislative requirements Working with our team means you don't have to think about your investment property. When there is an issue, your tenants will contact us instead of you, and we will reach out to our network for a rapid fix. We will also help you to quickly advertise and lease a vacant property so you don’t miss out on rental payments. We will take every step possible to make sure your tenants are happy and treat the property like it’s their own. Our approach At D Residential, we are focused on property management so we can deliver the best service. We sharpen that focus through these lenses: Transparency and trust: Trust is built on transparency. The D Residential team believes that with trust comes strong relationships and open, honest communication, ensuring a successful and stress-free property management experience. Proactive and professional service: When you choose D Residential Group, you can rest assured that your investment property will be managed by industry experts. Our team is also proactive, so you can enjoy the peace of mind that we will be in touch to keep you up to date about any changes or concerns Personalised and flexible approach: Being a boutique property management business means you will always be able to contact Diana, who will ensure you’re provided with a customised approach for your investment property experience. Local insight, local support: Diana and the team have in-depth knowledge of the Perth real estate market and its most popular suburbs. While vacancies are at all-time lows in our city, past experience has shown us that this will eventually change. It’s our goal to make sure your investment delivers returns in any type of market. Gold Seal Service Guarantee: D Residential is committed to providing exceptional service, backed by our Gold Seal Service Guarantee. This means if you’re not satisfied, let us know in writing, and if we haven’t resolved the issue within two business days, you’ll receive two months of property management for free. Advanced technology: In addition to our exceptional service, D Residential Group stays up-to-date with the latest technology. We support our in-person services with smart software, electronic forms and paperless transactions for your convenience and the good of the planet. Our customer feedback speaks for itself: “Diana has been open, transparent, caring and always maintained good communication. I can honestly say that she is the only property manager that I would trust with my properties!” - Kim Pham Work with Perth’s property management specialists If you are looking for a property manager who is dedicated to providing exceptional service you can rely on, say hello to D Residential. Experience the D Residential difference for yourself. Contact D Residential today.