What does the weather have to do with Broome’s rental cy­cle?

Broome Advertiser - - Property -

We are now start­ing to see the va­cancy rate start to creep up from 1.5% to now over 3% which means the rental sup­ply of prop­erty is more than the de­mand for rental prop­er­ties. This in­crease is mainly due to the fact that the rate of en­quiry is now sig­nif­i­cantly re­duced and fur­ther­more as we ex­pe­ri­ence hot­ter weather in the next few months, the va­cancy rate will fur­ther in­crease. Yes it is true the weather will have a di­rect bear­ing on Broome’s rental cy­cle. Not only does the va­cancy rate rise and the num­ber of days on mar­ket is ex­tended when it gets hot, but we also see an in­crease of re­quests from ten­ants to “break lease” which only ex­ac­er­bates the sit­u­a­tion. A break lease is where a ten­ant re­quests to va­cate even though the fixed term has not yet ended and un­for­tu­nately oc­cur for a va­ri­ety of rea­sons like job trans­fers, hours of cur­rent work re­duced so ten­ant can­not af­ford to pay rent, a change of plan and ten­ant wants to leave etc. When it comes to ‘break lease’ sce­nar­ios, some ten­ants in­tend to va­cate quickly; oth­ers give lots of fore­warn­ing; and oth­ers will stay un­til a new ten­ancy is se­cured and then or­gan­ise them­selves to va­cate be­fore­hand. Re­gard­less break leases un­for­tu­nately puts pres­sure on the ris­ing va­cancy mar­ket as it means more prop­er­ties to com­pete with va­cant prop­er­ties. A break lease prop­erty is not re­flect in the va­cancy rate as it is not tech­ni­cally va­cant. In break lease sit­u­a­tions own­ers feel dis­ap­pointed to be los­ing their ten­ant be­fore the end of the signed agree­ment. This does not mean the ten­ant can ex­pect to sim­ply walk away from a fixed term ten­ancy with­out any fur­ther fi­nan­cial obli­ga­tions. In­ter­est­ingly the Res­i­den­tial Ten­ancy Act does not spec­ify break lease charges but in Com­mon Law a breach of con­tract does al­lows for com­pen­sa­tion (dam­ages) to be paid. If you are won­der­ing when is the best time to have a lease ex­pire we would al­ways rec­om­mend (where pos­si­ble) to have a lease com­ing up for re­newal usu­ally just be­fore school hol­i­days if it is a house and more par­tic­u­larly in be­tween the March to July pe­riod. Late Jan­uary is also a very busy leas­ing month (weather per­mit­ting) as of­ten new peo­ple are mov­ing to Broome for the start of the school year. If you are also won­der­ing what can you do to pro­tect your­self and your rental funds check the fine print on your In­sur­ance pol­icy to make sure it in­cludes Land­lord Pro­tec­tion In­sur­ance. If not then se­ri­ously con­sider it. This helps take off the pres­sure when there is break lease sit­u­a­tion as you are gen­er­ally cov­ered. If you would like more ad­vice about prop­erty man­age­ment please con­tact Char­maine Snow from First Na­tional Real Es­tate Broome on (08) 9192 2000.

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