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Perth renters get upper hand

University student Olivia Amodt.

Tenants are reaping the benefits of Perth's highest rental vacancy rate in more than five years as agents scramble to fill more than 7000 empty homes across the metropolitan area.

The vacancy rate reached 4.4 per cent this month for the first time since January 2010, with about 2000 more properties available for rent compared with this time last year.

According to the latest Real Estate Institute of WA figures, the dwindling demand has seen tenants pay a median rental of $430 a week - $30 a week cheaper than the same time last year.

REIWA's property management chairwoman Jenni Wood said cheaper rentals had prompted a wave of first-time tenants to move out of their parents' homes.

Despite record low interest rates, she said many young people were opting to rent so they could still afford their "creature comforts" after fleeing the nest.

"There's more availability and affordability comes in there too, which is why you'll see more young ones moving out of home now," she said.

"If they're going to buy, they generally have to give something up, they have to move further away and have a smaller property. But, they still want it all."

University student Olivia Amodt, 19, pays $360 rent for her two-bedroom, one-bathroom unit in Mt Lawley.

Ms Amodt said, in contrast to the queues of prospective tenants three years ago, she had the choice of many rentals in her price range and was often one of only a few people at each viewing.

"It was quite easy really, this is the only one I applied for after looking at about six," she said.

"I was quite amazed that I got this property for the price it was. I think a lot of my friends were also quite surprised at the price."

REIWA president David Airey warned landlords to expect to discount further, with the annual winter lull around the corner and dwindling population growth reducing rental demand.

Rentals in the best condition for the price would be the ones to attract tenants.

"Many property owners would need to review their asking rents to attract and maintain good tenants amid the competition," he said.

Ms Wood said investors should not be scared off by the fall in demand and she insisted properties were still "a very good long-term investment".

"I had heard anecdotally a couple of properties in the western suburbs that might have an asking price of $850 to $900 a week, and they've had multiple applicants and they've been able to achieve above the asking rent," she said.