This is a good question because in July, the Australian rental market experienced its slowest growth in four years, according to CoreLogic’s monthly Chart Pack[i]. The research revealed a modest 0.1% increase in national rents during July.

This situation has been partly caused by an easing in net overseas migrations, which means that in some markets, we’re seeing increasing vacancy rates – but not all. CoreLogic says that rents rose by 0.6% in Adelaide in July and 0.3% in Melbourne and Perth.

Either way, the rental market is changing, and the fact is that tenants will have more choices, and when this situation arises, they may be more open to making a move. With this in mind, landlords can take several steps to keep their tenants happy and less likely to seek out new rental digs.  

Start by being flexible with your tenant. Instead of sticking strictly with six or twelve-month lease, consider offering longer terms that provide tenants with more stability such as 24 months. This move also locks in your current cash flow for longer and could appeal to tenants looking for longer-term security. 

Here are some additional strategies to help you retain your current tenant:

Consider holding off on rent increases: If the weekly rent is fair and at market value, it might be worth holding off on rental increases to retain a good tenant, especially during quieter times in the market.
Allow or make property improvements: Small upgrades, such as new flooring or blinds, can make a big difference. You don't have to go overboard—simple things like replacing old carpets or adding air conditioning could improve tenant satisfaction without breaking the bank.
Update appliances or fund maintenance expenses: Updating kitchen appliances or paying for the maintenance of a pool and garden can make your property more attractive to tenants, making them more likely to stay. These moves also demonstrate you're invested in maintaining the property and your tenants' comfort.
Listen to your property manager: Your property manager understands the local market far better than other so-called experts. Trust their advice on pricing and tenant relations, as they have real-time knowledge of what's happening in your area. 
Your local Raine & Horne Property Manager can offer additional tips and strategies to help you retain your current tenant. 

[i] https://www.corelogic.com.au/news-research/news/2024/monthly-rental-growth-hits-lowest-rate-in-four-years-as-capital-city-demand-declines