With vacancy rates sitting low and demand for rental homes remaining high across many parts of Australia and New Zealand, plenty of property investors are asking the same question: is now the time to hold tight, or should I consider selling?

While there’s no one-size-fits-all answer, understanding what’s driving the market, and how it affects your long-term strategy, can help you make a more informed decision.

Strong demand = strong returns, for now

When rental markets are tight, landlords are often in a prime position. Limited supply and steady demand can lead to higher weekly rents, fewer vacancies, and more choice when it comes to choosing reliable tenants. For many investors, this kind of stability offers peace of mind and strong short-term returns.

And it’s not just rental income that’s appealing. In popular areas where demand stays high, rental properties often see steady capital growth. Holding onto a well-located investment could mean you benefit from both consistent rental yield and long-term property value gains.

But it’s not all upside

That said, managing an investment property isn’t always smooth sailing. Even in a strong market, investors still need to keep on top of maintenance, tenant communication, insurance, compliance obligations, and more. And while property values may be on the rise now, markets can shift.

In some cases, investors may face rising expenses, from insurance premiums to repair costs, which can eat into returns. Others might be looking to simplify their portfolios, reduce debt, or free up capital for other opportunities. These are all valid reasons to reassess whether it’s the right time to sell.

Standing out matters more than ever

With more investors holding onto their properties, competition in the rental market can increase. To attract (and keep) quality tenants, it’s important to present a property that’s well-maintained, fairly priced, and marketed effectively. Updates to fixtures, fresh paint, or energy-efficient appliances can give you an edge in a busy market.

Keep an eye on the future, not just today

The rental market may be strong right now, but no market stays the same forever. Interest rates, building supply, migration trends, and government policy can all shift the balance over time. Staying up to date with these changes, and how they affect your property’s performance, is key to making smart investment decisions.

Thinking about your next move? Let’s chat

Whether you’re weighing up the pros and cons of holding onto your investment, or curious about what your property might be worth in today’s market, I’m always happy to help.

A quick chat could give you the clarity you need, whether that means staying the course or planning a strategic sale.

Get in touch any time for a no-pressure conversation about your property goals.