2019 will bring a range of new financial challenges for landlords. Here are our predictions of some of the biggest game changers that will revolutionise how we rent property:
Self-managing will grow exponentially
In 2019, property investors will have to deal with greater cashflow challenges, lower rental yields and larger vacancy rates than ever before, making landlords very money-conscious.
Self-managing landlords, meanwhile, can expect as much as 5-6% of their rent collections back in their pocket, translating to thousands of dollars saved every year. That makes it much more cost-effective than using a property manager, and we predict that many landlords will, therefore, consider self-managing for the first time.
Tenants will demand new payment technologies
Almost one-third of Australians live in apartments, half of whom are between 20 and 39 years old. These millennials have come to expect responsiveness and connectivity in all areas of life thanks to the way companies like Uber, Netflix and Airbnb have digitised and disrupted the market.
Tenants will encourage landlords to accept new digital payment methods like OSKO and PayID, and they will expect greater flexibility in their rent payment schedule. These early adopting millennials will appreciate the ease of online payments, but landlords too will enjoy how quickly payments can be received.
Skype inspections will become the norm
Technology is taking over almost every industry in Australia, and inspections conducted over Skype or other video applications are expected to become more commonplace. They’re much faster and more efficient than traditional in-person visits, meaning landlords can focus on more pressing maintenance and finance tasks.
More transparent service
Tenants will expect their landlords to be more transparent in their service, with explanations of why certain contractors were hired for repairs and how their prices measure against the competition and more clarity about how their rent compares to similar properties.
With all of these changes expected to arise in the coming months, landlords and tenants may feel overwhelmed. Lodge are here to explain the renting process and make it easier for you to manage your property. Contact us today for more information.