Pricing a Rental Property - Part 2
By | 9th Mar 17

How to Determine a Property's Rental Figure

 

 

 

 

 

 

With so many options available to tenants and an abundance of new apartments on the market, ‘good quality’ tenants are becoming fussier and expect properties to meet their requirements. 

In order to establish the value of the rental property and determine the rental price, there are a number of areas that need to be considered:-

Condition & Amenities

Tenants are becoming more savvy when looking for a rental property and can easily compare similar properties on line. If a property is listed at the same price as one with better amenities or in a better overall condition, they will overlook the property completely.  So it is important that tenants do not immediately discard your property from their search because these boxes aren’t ticked.  

The following is a list of items that are deemed important to tenants when searching online for a suitable rental property.

  • Flooring / carpets are well looked after
  • Walls and painting don’t look ‘tired’ or scuffed. It is a good idea to consider painting rental property walls a colour other than white, which will look tired very quickly.
  • Efficient Heating and Cooling in living areas and bedrooms.
  • Good Security, especially if the property is a house or an apartment / unit on the ground floor.  By having inadequate security, you could be cutting out most female renters.
  • Dishwasher in the kitchen.
  • Laundry taps within the premises. Most tenant will not want to use a shared laundry for convenience and safety reasons.

Your property is an investment and it pays to invest in keeping it well maintained and in line with other properties on the market. As some of the properties for lease in your price range may be new properties, when your property becomes vacant it is an opportune time to consider some basic freshening up by looking at the flooring, painting of walls, updating fixtures (door handles etc.) and adding amenities.

Between tenancies is also a great time to check everything in your property is in working order for your new tenants.  In particular, we recommend having gas heaters serviced and smoke alarm batteries replaced.

The condition of your property will determine your rental price, how quickly you can lease it and the quality of tenants that you will attract. If you want to attract professionals in a property, then your property needs to attract these prospective tenants.  If you are wanting to keep your ongoing investment into your property low, then you need to accept on the other side you will achieve a lower rental amount and tenants who may not look after the property well.

For more information on how to present your rental property or advice on what rental your property is worth, please contact our office on 1300 697 356 or email rentals@advantageproperty.com.au.