Keep the cash flowing in
Money Magazine Australia|September 2020
In tough times, it pays for landlords to make an extra effort to hold onto a good tenant
Pam Walkley
Keep the cash flowing in

An investment property without a tenant is virtually worthless. Even if your property is valued at $1 million or more, if it’s generating no income it’s a millstone around your neck.

Attracting and keeping good tenants is the key to being a successful property investor. And that’s even more so now that Covid-19 has sparked an increase in vacancies, which is pushing rents down.

Sydney had the highest vacancy rate in the nation at 3.8% at June 30, falling 0.2% from May, followed by Melbourne with a vacancy rate of 3% and falling 0.1% in the month, according to SQM.

In the wake of this, Australia’s median rental has dropped 0.5% in three months, reversing almost two years of straight growth, according to June quarter data from CoreLogic. This is the largest quarterly drop since September 2018.

When separated by location, capital city rental prices were hit hardest, dropping by 0.7 % compared with just 0.2 % in regional centres. The Hobart market had the largest rental value falls in the June quarter, down 2.3 %, followed by Sydney (-1.3%), Melbourne (-1%) and Brisbane (-0.6%).

Covid-19 means there is not much upside for landlords, with closed international borders, job losses and reduced income all significantly reducing demand.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM MONEY MAGAZINE AUSTRALIAView all
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024