The rental market in Australia is tight. Landlords who generally make things more difficult on tenants they want to see leave by raising rents are being warned that the long term risks are looking bad.
Many landlords see no choice but to raise rents because the housing market's affordability here continues to drop. As property owners face larger costs for owning the property themselves, such as the increasing interest rates forcing their loans higher, many warn that passing on these increases in full to renters may cause them to lose long term tenants.
In many areas, there are low vacancy numbers. This allows landlords to increase rates because the supply of rental properties is low. Doing so though could prove dangerous.
The key to remember is that the number of renters is growing. As the housing market continues to be tight, more and more people will be either forced out of their own homes and into the market, or they may be forced to rent until they can purchase their first properties.
In addition, property investors are seeing these opportunities as a way to get into the market. Because rental properties are still slimly available, and demand is increasing, there is an opportunity for investors to profit here.
