Tightening rental demand means more maintenance for owners

The rental market in Toowoomba is facing a significant tightening, with demand outstripping supply and driving up rental prices. While this might seem like a win for property owners, it’s important to recognize that with higher rental prices come higher expectations from tenants. The analogy of booking a hotel room perfectly captures this dynamic: if you booked a cheap room and the tap dripped all night, you might not be overly concerned. However, if you paid a premium price, you would rightly expect the property to be of a higher standard, with everything in perfect working order.

In Toowoomba, this principle is playing out in real time. As rental prices continue to climb, tenants are becoming increasingly discerning, seeking out properties that offer not just a roof over their heads, but a living experience that justifies the cost. They are looking for well-maintained homes that come with all the modern conveniences, from air conditioning to spacious sheds for storage.

The days of tenants being satisfied with basic, no-frills properties are fading fast. In a market where they are paying top dollar, tenants expect top-tier quality in return.

This shift in expectations is particularly relevant in a market like Toowoomba, where the influx of new residents—driven by lifestyle changes, employment opportunities, and regional growth—has put additional pressure on the rental market. Properties that might have been considered perfectly acceptable a few years ago are now falling short in the eyes of prospective renters. They are looking for homes that are not only well-located but also well-appointed, with modern kitchens, updated bathrooms, and functional outdoor spaces.

For landlords, this means that merely offering a property is no longer enough. To attract and retain quality tenants, properties must be presented at their best. This could involve investing in upgrades, whether that’s installing air conditioning units, renovating tired spaces, or ensuring that outdoor areas are well-maintained. A property that stands out in terms of comfort, functionality, and aesthetics is far more likely to appeal to tenants who are willing to pay a premium.

Additionally, the emphasis on quality doesn’t just benefit tenants; it’s a win-win situation for landlords as well. A well-kept property not only attracts higher rental returns but also tends to attract tenants who are likely to care for the property as if it were their own. These tenants are more likely to stay longer, reducing vacancy rates and turnover costs. In a market where demand is high, landlords have the opportunity to command higher rents, but to do so sustainably, they must meet or exceed tenant expectations.

Tenants are no longer content with basic offerings and service. Maintenance and timeframes of repairs expectations are increasing as tenants believe they are paying rent for a “working” property feature. The RTA have reported an increase of rent compensation or rent decreases based on ‘lack of services’ such as a working stove or oven or not being able to use an air conditioner.

For landlords, this means that maintaining and upgrading properties is not just advisable but essential. Just as you would expect a premium hotel room to be free from faults, tenants paying top dollar for rental properties expect nothing less than excellence.

Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.