Rental Returns

I have conducted a review across about 20 apartment rental properties in Brisbane and S.E. Queensland, comparing the 12/13 FY with the previous financial year.  The analysis is done before depreciation and tax is taken into account.  Some of my conclusions, from this limited review:

• rent increases in the past year have been minimal, and I suspect below inflation
• vacancy periods between tenants have increased slightly
• body corporate fees have increased dramatically, and well more than rents and inflation
• council charges and water rates are slightly higher
• long term rental properties do much better than vacation or short term rental properties
• net returns, before interest, have decreased compared to the previous financial year (mostly due to body corporate increases being more than rent increases)
• fees and charges from rental agents are high, especially when considering the work done and value received -- self managed properties do better than agent managed properties for this reason,  even if the rent received is slightly below market rent
• if interest rates had not decreased, then the overall picture would not have been rosy.  
• because of decreases in interest rates, the overall cash position (not taking into account depreciation and tax) improved in the 12/13 FY compared with the previous financial year.