While REIWA reported its September Quarter vacancy rate at an encouraging 2.9%, the stats drawn from apartment property management specialists, M/Property, were even lower at 1.97%. As experts in this sector, they believe there is always scope to improve the occupancy and profitability of an investment property.
M/Property is one of the only specialist apartment management and leasing companies in the State. With a dedicated leasing team and over 18 years’ experience in apartment management, the company manages over 600 apartments at any one time.
M/Property Senior Property Manager, Tammy Smith, says that even though the vacancy rate is low in WA, Perth apartment investors can still miss out on valuable and quality tenancies simply by not understanding what is important to the renter.
“We are experiencing a market shift in Western Australia towards long-term renting as a lifestyle choice. This represents an incredible opportunity for property investors,” she said.
“Unlike conventional homes where size and space are often the important factor, when it comes to apartments, location, presentation and flexibility are paramount to both the existing and emerging apartment rental market.”
Tammy says apartments close to community infrastructure, those with access to great facilities and ones outlooks tend to get snapped up, there are a range of other factors that a property investor can control to attract and retain great tenants.
- Sell the dream with professional photography
Rental properties traditionally don’t get the same promotional treatment as homes available for sale. However, in a competitive market, owners will get more interest and potentially higher rentals if they ‘sell the dream’ with professional photography during the marketing phase.
- Add value with furniture
While not for everyone, adding a furniture package to the mix can significantly increase the rental return. A well-furnished apartment can rent out for 25%-75% more than unfurnished apartments. The cost of furniture is also often tax deductable.
- Be flexible with pets
Pet-friendly apartments are increasing in demand as more renters opt for making their apartment a long-term home. In fact, many States across Australia are changing legislation to make it easier for pet ownership in rental properties. Why not get ahead of the game to lock good tenants in early.
- Engage an approachable team
There is nothing more off-putting to a renter than being made to feel like a second-rate citizen. Ensure your property management team are approachable and responsive to not only the renters’ concerns, but also yours.
Tammy says a property management team with a sound knowledge of strata management is also imperative for apartment investors, together with a good relationship with building/facility managers and a solid database of good tenants to source the best tenant for the apartment.
For more information on M/Property services visit www.mproperty.com.au.
Secure Income is Key in New East Perth InvestmentRead more
M/Group’s propensity to identify and secure extraordinarily stable income producing property investment opportunities continues with its latest investment fund release for a high-profile commercial property in East Perth.
The company is seeking to raise $5.8 million for the well-located office building at 130 Royal Street.
The property is fully occupied by longstanding tenants from a diverse range of industries and is centrally located close to the CBD, transport, main roads, restaurants, cafes and retail outlets. It is also in close proximity to Optus Stadium, Crown Casino Perth and the Matagarup Bridge that connects East Perth to Burswood Peninsular. Importantly all tenants have renewed (or are in the process of renewing) their leases in the last 2 years.
The investment fund is targeting an 8.5% per annum return on investment paid monthly and with a WALE (Weighted Average Lease Expiry) of over four years.
M/Group Managing Director, Mr Lloyd Clark, said the property was again secured by M/Group in an off market negotiation and is based on an investment framework that has been highly successful with the company’s other funds.
“M/Group’s is so proud of its ability to attract reoccurring investment and oversubscribing on funds. It is testament to our strategy and the standard of investment opportunities we continue to deliver,” he said.
“This latest fund release is underpinned by strong investment fundamentals. It’s location and strong tenancy leaves little risk in achieving positive returns. We have no doubt the opportunity will be welcomed by our network of investors.”
The Royal Street property sits on a land area of 751sqm, where the building itself comprises a total net lettable area of 1,857 sqm with typical floor plates of 585 sqm. It offers 27 secure undercover car parking bays and has an environmental rating of 4-star NABERS and is BEEC certified.
M/Group Director of Asset Management, Mr James Collis, believes demand for this class of investment opportunity is high, especially with bank interest rates being at an all time low.
“Given the lack of return being paid by banks, investors are seeking secure investments that can provide a high yield and paid regularly.
“M/Group works to a proven strategy and packages its opportunities for minimal risk and maximum returns. We have demonstrated exceptional capacity to deliver on this criterion, and our track record speaks for itself.”
The investment period for 130 Royal Street, East Perth will span over seven years with a minimal investment requirement of $50,000.
Titles Arrive for Large Lot Wellard EstateRead more
Titles have been issued for the first tranche of oversized homesites located at the new-concept boutique estate, The Wedge. The event signals the completion of Stage 1, which already has some 30% of available land sold.
The Wedge is located on one of the last development sites within the sought-after Wellard North community. Homesites have been designed in response to a recognised family preference for larger land, with lot sizes ranging between 350sq.m and 475sq.m
Developer Mr John Wroth, Director of Monument parent company M/Group, said he is looking forward to heightened activity within the estate now that the land is ‘build-ready’. He said, being A-Class titled land with no bushfire conditions, owners will have the flexibility to select from a broad range of home styles and designs.
“There is no question that we successfully acquired a very special piece of land to work with at The Wedge. True to its name, the site is ‘wedged’ within one of the most sought after areas in the region. It is surrounded by the stunning Bulrush Nature Reserve, which is protected land that will continue to provide a natural shelter and lush green backdrop,” he said.
“Once in the estate, however, we are beginning to see a glimpse of the character and lifestyle features planned for the site. This includes large lot sizes based on market feedback, children’s playground and pump-track, walkways and ample public space. Together with the proximity to impressive community amenity, there is little wonder that the initial land release attracted so much momentum.”
The Wedge is located between the freeway and the ocean and is close to public transport, medical facilities, schools, shopping and just 30 minutes to Perth CBD.
It is being developed to a company philosophy that seeks to introduce a sense of distinction and character to an environment through considered design and special features. Such an approach is in keeping with the broader M/Group values and has already been highly successful at sister developments in Secret Harbour and Beeliar.
“As soon as you approach the entry statement at The Wedge, it is quite obvious that this is not a typical land estate,” Mr Wroth continued.
“We look beyond the standard ‘cookie-cutter’ environment to create a new style of estate that really sets it apart from the rest. This approach has now been successful across three consecutive estates and we are thrilled the market is responding positively.”
The Wedge is located on Bertram Road, Wellard North and Stage 1 homesites start from $174,000.
For more information visit www.thewedgewellard.com.au or contact Damyn Strang 0434 070 654.