HOW COVID IS IMPACTING EXECUTIVE RENTALS IN BRISBANE
As we all know, COVID-19 has had a significant impact on many aspects of life including travel, small businesses, big companies, health and, of course, Real Estate. While COVID-19 has seen an increase in house prices for some cities in Australia, the demand for rental properties has decreased due to a large percentage of renters being young workers who have been directly impacted by the virus. In addition, the restrictions on international travel have also impacted this, with limited numbers of immigrants entering the country. However, a decrease in demand does not mean hope is lost for landlords and Real Estate Agents; in fact, if you’re clever about it, you can use this time to your advantage to secure agreements and work flexibly with your clients. Read more below to find out.
Decline in Demand for Short-Term Rentals
As mentioned above, COVID-19 has caused a decline in demand for short term rental properties especially executive property rentals. This is because many renters who have had their financial situation impacted by the virus seek to end their leases and seek more affordable living arrangements. In addition, the decrease in overseas immigrants coming to Australia means that even less people will be looking for short-term accommodation. As a landlord, a “business owner” essentially, your first instinct might be to give your tenants a warning and notice of end of lease if they can’t afford the payments and allow them to end the lease. However, due to the lack of demand, it may actually be more beneficial to negotiate a lower rate with your current tenants instead of putting your home back up for lease. By doing this, you can continue to foster a good relationship with your tenants who will be grateful for your support during a difficult time. Having a good relationship with your tenants will increase your chances of them signing on for another lease term, and will be more likely to take good care of your property. Essentially, you’re offering a service to your tenants, so you want to make sure you take care of them and be flexible within your means.
Increase in Demand for Long-Term Rentals
On the other hand, COVID has actually caused an increase in demand for long term rentals, particularly apartments in large dwellings. Many executive rentals are within high end apartments buildings and are designed to be rented out for extended periods of time. Therefore, COVID hasn’t significantly impacted the executive rental market as such, but rather has encouraged landlords to shift away from offering short term rentals and instead focus on providing high quality properties designed for long stays.
Read More: https://executive-rentals-brisbane.over-blog.com/2021/02/covid-impacting-executive-rentals-brisbane.html