What a vacancy rate says about your local rental market
The REIQ is providing Queensland agencies the opportunity to benchmark their success against their region.
Agencies with a rent roll will have the opportunity to compare their own vacancy rate against their region’s average, once the REIQ Vacancy Rate Report is released in November.
More than 20,000 agencies are given the opportunity to provide their vacancy rates each quarter, making the report one of the most accurate sources of data for agencies to use when analysing their performance against the region’s average.
Why we need your data
The REIQ’s Vacancy Rate Report is an important indicator on how the overall rental market is performing.
A high volume of rental stock in your region, demonstrates that tenants are in a more favourable position.
Similarly, a low amount of rental stock suggests your area may be considered a ‘landlord’s market’.
The REIQ collates data from Greater Brisbane, tourism centres, regional centres and other regional areas across the state.
Once a sufficient amount of data is reported from each area, the REIQ can determine whether an LGA or sub-region has a tight (below 2.5%), healthy (2.5% – 3.5%) or weak (above 3.6%) vacancy rate.
This data can then be provided to lending institutions, data aggregators and analysts who monitor Queensland’s rental market.
More importantly, it can be used by agencies to educate their clients.
Managing Director of Solutions Property Management, Laura Valenti, says the vacancy rate report can reaffirm why a landlord may need to reduce their rent.
“If an owner is aware that the vacancy rate in the area for that particular type of property is high, they will understand why they need to take the price down – it’s not just the agent doing a ‘bad’ job, it’s market forces out of our control,” says Valenti.
“Tenant feedback from viewings is very important, so that we can take this back to our owner clients and arm them with the most up-to-date and relevant information from the market.
“If we then add to this the area’s ‘official’ vacancy rate, this adds ammunition to our recommendations.”
How can this data benefit your agency?
The REIQ Vacancy Rate Report is an important KPI tool, says Valenti.
“We use it to gauge how well our leasing departments are travelling.
“If our vacancy rate is high, it could be an indication that the asking rents are above market value, and therefore our team has not been successful in getting owners to reduce rents to meet the market.
“This means we need to do more team training.”
Valenti also suggests that the quarterly vacancy rate can highlight other problems, such as lease renewal processes.
However, the vacancy report can also highlight an agency’s strengths, too.
“We use our vacancy rates as a business development tool to prospective owners – it shows them that our rates are below the average, which means more income in our clients’ pockets.”
Got a rent roll? We’d love to hear from you!
To produce this report, we need your help.
Without a sufficient number of respondents, the REIQ cannot produce accurate data for your region.
If you would like to receive a copy of the vacancy rates survey, please contact firstname.lastname@example.org.
Please note: information provided by agencies is 100% confidential, and the data is always reported anonymously.