Sunshine Coast tenants will be at the mercy of landlords, with weekly rental prices to increase “substantially”, a property expert has warned
Sunshine Coast tenants will be at the mercy of landlords, with weekly rental prices to increase “substantially”, a property expert has warned

Why your weeks’ rental payment just spiked

Sunshine Coast tenants approaching the end of their lease will be at the mercy of landlords, with weekly rental prices to increase "substantially", a property expert has warned.

Mal Cayley, chief operating officer of Mooloolaba-based property firm Direct Collective, said the lack of rentals was a major concern.

He said the COVID-19 pandemic has accelerated interest from buyers from Sydney and Melbourne with waves of buyers from those southern capitals looking to escape to the Coast.

Real estate agents from Caloundra to Coolum have reported record-level interest in rental properties with more than 50 parties on site for inspections.

While the news was good for homeowners and investors, Mr Cayley said it was the opposite for tenants with weekly payments expected to spike considerably.

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"Property prices are rising, everyone knows that, but where rent would rise $5-$10 per week, those same properties are now going up $70-$80," he said.

"We are having to write to our tenants to make sure they are prepared for what's happening when the lease is up.

"Owners need to find that balance if they like their tenant. But then, if they don't raise the weekly price, they are at significant disadvantage. The balance is tough to find.

"It's not that the owners are being greedy, the prices are based on market evidence, that how much interest there is."

Mr Cayley said key growth areas and suburbs around large infrastructure with large job creation were fast becoming unaffordable for some.

"Caloundra, Maroochydore, Birtinya, key growth areas, someone who could afford to live in those areas 12 months ago, may have to push out towards the hinterland," he said.

"Our advice to tenants is to budget ahead and know your limits."

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Real Estate Institute of Queensland's Sunshine Coast zone chair Matt Diesel said the Coast's rental market was "the tightest he had seen" with zero vacancies right across the board.

Mr Diesel said landlords had raised rent simply because of such high demand.

"Of course they are," Mr Diesel told the Daily last week.

"There's crazy things happening at inspections too, 40-plus people showing up so you get bidding wars.

"Cashed up people from Sydney and Melbourne are offering quite a bit more to secure or offering a year in advance.

"All these sorts of things, we haven't seen, only heard them happen elsewhere."


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