HOW DO YOU DETERMINE THE WEEKLY RENT ON A PROPERTY?

 

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One of the most important questions asked by prospective landlords and existing landlords is: “What rent would my property achieve?” or “How do you determine the weekly rent on a property?”

Determining the weekly rent on a property, involves a similar process to appraising a property for sale.
At the end of the day, the weekly rent will be influenced by the market (supply and demand of properties at the time of renting) and what the tenant is prepared to pay.
When determining the weekly rent, a professional property manager should not guess the rental figure off the top of their head. If you do receive a rental appraisal from an agent, always ask how they determined the rent achievable.
Some agents can over-price properties, as they believe that quoting a high rent achievable figure, will entice the prospective landlord to give them the business.
However, beware! Over-priced properties can lead to extended vacancy periods, resulting in lost rental income to you each week. Or, if you were successful in renting the property for a figure above the market, you need to be cautious of high tenancy turn-over. If the tenant discovers that the rent is excessive by comparison to the market, they are more likely to vacate at the end of the tenancy term.

 

For more information see http://www.rentaltrends.com.au

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