How to set a Market Rental Price
If you have Perth rental property that you’re looking to find a tenant for, one of the initial challenges you face is determining the correct market rental price. Contrary to popular belief, if you want set yourself up for rental success, you do not necessarily want to get the most money you could potentially squeeze out of tenants. What you are really looking to do is have a reasonable pool of tenant applicants to choose a quality tenant from. To do this, you need to look at how you measure up to other properties for rent in the suburb and the neighbouring area.
Determine your Property’s Value
One of the easiest and most effective ways to determine the market rental price is to simply compare it to similar properties. Not only will this give you a good idea off what you can charge, it will also introduce you to what your potential tenants are looking at and how you can set your property apart.
When you begin to compare other properties, you need to find locations that share attributes with your home, such as the number of bedrooms and bathrooms, size, car accommodation, overall presentation and their location. Location has such a large impact on the overall value of a home that your really don’t want to even compare homes that are over 5 kilometres from your home. Once you have found a few similar locations, narrow it down to three or four homes, optimally ones with the same number of bedrooms, which is usually a key qualifier for tenants.
Pay Attention to how the Market Treats These Properties
Once you have found some candidates for comparison, take a couple weeks to observe how quickly they go off the market or if they have been hanging around for a while. By comparing how the different properties perform on the market and their relative price, you should be able to settle on an appropriate rental price for your property.
Listen to the Market
You need to remember that the rental market is the only true setter of price and that after you go to the market, you listen to feedback from tenants that view your property. Adjusting quickly to this feedback will enable you to find the market and a decent number of tenants to choose from. You don’t want to be hoping and praying that the only tenant that views your property checks out, you want choice.
If it’s all Too Hard
The easiest way to set the rental price and find a quality tenant is to have your property professionally managed by an expert. We can look at past rental data and make a recommendation on rental price and handle the whole process of finding the right tenant an easy one, even in this more challenging rental market. Start by requesting a rental appraisal.