It is prudent to employ an experienced property manager to do a rental appraisal that includes thorough market research.
What Is Market Rent?
Market rent is the amount a landlord might reasonably expect to receive and a tenant might reasonably expect to pay for a tenancy. The rent must be comparable to your property type with other rental properties in similar suburbs and streets.
Before advertising a property to rent or reviewing an annual rent increase, it’s essential to do market research that accurately assesses the rental market and compares apples to apples.
If a landlord charges significantly higher rent than the market rent, a tenant can apply to the Tenancy Tribunal to ask for a rent reduction.
What Drives The Rent Market?
➡ Supply & demand generally drives the rental market. In short supply, rents go up, and rents will hold or drop in an oversupply of rental properties on the market.
➡ It pays to keep a close eye on the market when rentals are in high demand, as is the case in Palmerston North and the surrounding areas at the time of writing this blog.
Local Knowledge & Expertise
Having local knowledge of surrounding suburbs is essential. Price your property too low, and you will miss out on higher returns.
Price your property too high, and you may find you have much less interest from prospective tenants and take alot longer to rent.
It can be challenging and frustrating sometimes to find the right balance, which is why an experienced property manager can help advise on setting the right rent to ask.
That attracts prospective tenants and, at the same time, provides you with a better overall return on your investment property.
Market Rent Tenancy Services (from bonds collected)
🔵 An accurate rental appraisal involves comparing similar properties currently advertised online and researching historical data and market insights online, such as tenancy services and real estate.co.nz.
🔵 Combining this with local knowledge of the area gives property investors and homeowners a professional opinion on what their property might rent for in the current market.
🔵 If you want to expand your investment portfolio, a rental appraisal can help you gain insight into the potential returns of properties you may be considering purchasing. Likewise, if your property is coming up for rent or isn’t providing the returns, you would expect we can assist.
Contact us for a free, prompt rental appraisal, Call Today’ 0272498295