How do you set the right rental price for your property?
6 Simple Tips
It can be tempting to set the price for your rental property at your mortgage – or even half – to determine a ‘fair’ price. But this method doesn’t take into consideration what your property has to offer. So how do you set the right rental price for your property?
How much rent is right for my property?
Although going off your mortgage payments might seem an easier option, you cannot rely on what you are paying. You may have a low or high interest mortgage that skews your monthly payment. Did you purchase your property for a steal because it needed a lot of work? There are a number of factors at play.
Consider other rental prices in the market
When real estate agents determine how to set a price for a home, they look at other properties in the area. To begin working towards setting the right price for your rental property, you should do the same. Of course you can make comparisons using realestate.com.au or domain, but is that enough?
Once you have a good list of comparisons, consider what you’d expect to pay for a similar space. It’s important to arrive at a price that you’re happy with, but also one that will attract the right sort of long-term tenants so you profit. The higher the rent, the increased chance of a higher turnover rate.
Know when to list your property
The time of the year can have an effect on how much rent you get for your property, and how long it will likely stay vacant. Do your research and consider the market trends and saturation in your suburb to help you list at the right time.
Consider your rental property’s selling points
Have you thought about the value-add features in your property? The features and amenities you can offer a prospective tenant can influence the price they are willing to pay in rent, such as:
- A dishwasher
- Recent renovations
- Hardwood floors
- A central location close to public transportation, shops and restaurants
- Plenty of closet space
- Included utilities
- Additional storage (i.e. a basement or garage)
- Off-street parking
Evaluate your property’s aesthetics
Depending on your lease, your tenants generally can’t paint their rooms. So it’s important to think about your choice of colour palette. Consider going for neutral colours where possible. Hardwood floors are generally desired more than carpet because they are easier to clean and look aesthetically appealing.
If you choose to rent your property furnished, use stainless steel appliances in the kitchen where you can, and modern fixtures in the bathroom. These small things are likely to attract more tenants and will command the best price for your investment.
Safety and security
This point doesn’t need too much explaining. It’s best practice to make sure your tenants feel secure, rather than fearing they will be robbed – or worse. Everyone wants to live in a safe neighbourhood. Cautious renters will check the crime statistics in the area, so you should too. You may consider adding additional security features such as a security alarm or ample outside lighting to make your next tenant feel safer.
The specialist approach, where science and art converge
Baxton utilise all of the above, together with proprietary software systems which automatically construct an in-depth Comparable Market Analysis (CMA), based on 30 years of data, which provides a comprehensive, real-time suburb and rental market data and trend analysis for your property. The CMA includes both houses and apartments. Baxton looks at properties comparable to yours, in the same area, to narrow down the achievable market rent. Baxton specialists then apply their years of experience to the scientific data to ensure a maximised rental price can be achieved today.
That’s the difference a Baxton specialist makes. They have unlimited access to Baxton’s exclusive Data Interchange Information System (DIIS), arming them with vital insights such as:
- Suburb overview;
- Surrounding suburb analysis;
- Rental pricing trends;
- Rental history;
- Leased rentals;
- Comparative rents;
- Comparative dwellings;
- Comparative supply;
- Days on market;
- Market Demand;
- Demographics; and
- much more.
That’s how to set a realistic price for your rental property.
Need help? Use Baxton
Written and syndicated by
– Baxton Media.
Apple News | Facebook | Google+ | Twitter | Instagram | LinkedIn
#1 – Australia’s Property Management Specialists