Major Factors in determining your rental value

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

It’s a common misconception that rents will always continue to increase. Just like a properties sales value, rent adjustments should be made taking the following factors into consideration:

Current Vacancy Rates

Vacancy rates can be effected by supply and demand and seasons, depending on the location of your property. For example, if your property is near a beach, vacancies are generally lower during the summer months or you may be near a university and experience peak periods at the beginning of the year and mass exits towards the end of the year.

Property Specific Market Demand

It’s important to understand what type of property is in highest demand in the area around your property? Will families requiring a well presented house with off street parking and 2 bathrooms pay a premium price in your location or is everyone in your market after an affordable studio apartment within walking distance to public transport.

Ability to Pay

If the average household around your property has a combined income of $100,000 and 1.3 dependants, you would risk extending your vacancy period if you were asking over $570/week for a property typical of the area.

If you were to increase your rent considerably over this figure you could risk your tenant vacating or falling into arrears.

It’s a common misconception that rents will always continue to increase. Just like a properties sales value, rent adjustments should be made taking the following factors into consideration.

More News

Minimising your risk – its all about being compliant

Upon entering into a new lease agreement, your property manager will need to ensure that your lease complies with current legislation that affects all rental properties. Today there are a growing number of compliance issues that need to be addressed before entering into a lease agreement, some of which have not affected lease agreements before.

Read More »

A Guide: Essentials for renting a property

At the beginning of a tenancy • read and sign your ‘Residential Tenancy Agreement’ form • keep a copy of anything you sign • seek advice if you have a tenancy issue or question • check that your new home is completely safe • complete a ‘Condition Report’ if you have paid a bond –

Read More »

Want to know more?