Be realistic about the rental rate of your property


Most people would like to receive an awesome amount of rent for their rental property yet, it must be considered that if they are vacant for an extended period of time then the average rent over the period decreases exponentially.

There are a number of elements that should be considered such as;
Demand – Is there high demand for properties in the market at the time or, is demand low? With rental properties, this can be seasonal and can be affected by a number of factors.

Availability – It is most important to look at realistic comparable properties available in the area in order to calculate an attractive (to the market) rent.

Vacancy rates in the area should be considered as well as the time on market for those properties.

Current prices – again, it makes sense to compare your property with similar properties already leased to ensure the current market rental value is realistic.

What if I want a higher rent than market value?

You can place your property on the market at any rental amount you wish. The market demand will determine the true rent, and if the prospective tenants (the market) decide that the amount of rent is too high, the property will remain vacant for longer than necessary. The annual rental return will be affected and will reduce by 2% for every week it is vacant.

Written By Senior Property Manager Kim McPhee

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