The question of “what is my property worth to rent?” is as complicated as it is necessary to answer. As a prospective landlord, you need to balance the desire to get as much out of your property as possible with the need to draw in prospective tenants. This can be difficult if you don’t have a solid understanding of what rental properties are worth and what factors into that final number. That’s why we’re here to help.
At My Rental, we provide landlords with simple, state-of-the-art property management services. So, what is my property worth to rent? And what should I be looking out for when trying to determine that value? Let’s take a look at a few things you should consider.
This is one of the more straightforward solutions when trying to work out what your property is worth to rent. Simply speak with your property management provider to discuss your options regarding the appraisal of your property. Your property specialist will then go over all of the important features of your home, including location, age, style, condition and a variety of other factors, which will allow them to offer an estimate of how much you can realistically ask for in terms of rent.
During this process, your property manager will also look at how much comparable properties have gone for in similar areas and time periods. This is important, as it not only shows what people have been asking for similar properties, but what renters have actively been willing to pay. It’s all well and good to put a price on your rental property, but it won’t mean much if nobody decides to pay it.
Want to learn more about your property’s earning potential? At My Rental, our team offers free rental property appraisals to ensure that you are getting the right monthly income from your house or apartment. Speak with one of our specialists today to learn more about how to value your rental.
Whilst historical data is always going to be an incredibly useful tool, especially when looking at how similar properties have fared on the rental market in previous years, this isn’t always an accurate depiction of where things are. The market can change from month to month, and circumstances outside the market can have a direct impact on your bottom line. So, before you settle on a rental price, it’s important to look at current supply and demand.
If there are a lot of vacant homes in your area with very few people successfully renting out their homes, it’s an indicator that there isn’t a lot of demand for rental properties at this time. Alternatively, if there are no vacant rental properties in your area, you can assume it will be far easier to get your rental noticed, even if you charge a little more.
It’s factors like this that make the question of “what is my property worth to rent?” so difficult because the answer is changing all the time. However, by gathering all of the information you can about your property and surrounding rentals, you will be able to make far more educated decisions.
Though it would be easy to simply compare your home to others in the neighbourhood and leave it there when trying to work out what your property is worth to rent, there are other areas to factor in. Consider the fact that if you have spent extra money adding some quality of life additions to your home, there is every chance that renters would be willing to pay more for access to them as well.
Inclusions like a pool, a fantastic modern kitchen, a home theatre setup, even a generous garage storage space; anything that could help you stand out from the crowd has a chance to net you some extra income when it comes time to rent. However, it’s also important to keep in mind that these additions won’t appeal to everyone that comes to look at your property. So, if there’s currently low demand in your area, banking on your home fetching an extra high price because of certain luxuries may not always be the best bet.
If you’ve gone through the process of doing your research and getting an appraisal and you aren’t entirely satisfied with the final result, don’t worry. Many features of your property aren’t set in stone, and sometimes the preparation process is one of the most important factors in what your home actually ends up going for. So, before you put your property on the rental market, here are a few things to consider:
“The first bite is with the eye” may be a culinary cliche, but it also rings true in the rental market. People are going to make some snap judgements about your property right from their first glance, so it’s important that you make them as positive as you can. Dealing with any wear, tear and dirt that may be making your property’s facade look less desirable is a great idea, as is doing some gardening on the front lawn. After all, you’re selling people the experience of living in this place, and first impressions can be hard to shake.
Kitchens and bathrooms are two of the most important rooms to get right when creating an appealing rental. People associate stylish bathrooms and kitchens with luxury, and there are few greater detractors than kitchen and bathroom areas that have been left to build up with grime or dust. This doesn’t mean getting expensive renovations done; it just means doing what you can to ensure these areas are looking their best. Changes could be as simple as a deep clean or as complicated as retiling and changing over fixtures; either way, a little effort can go a long way to increasing your property’s worth.
One of the underappreciated factors in people’s rental decision making is whether they will even be able to fit all their stuff. Although you may have lived minimally in a space with relative ease, not everyone can do the same, and a lack of storage can be a huge detractor for potential tenants, especially those with children. You can immediately make your property more desirable by smartly adding some storage areas such as wardrobes and additional shelving.
Want to learn more about what you can do to improve your property investment experience? Explore the My Rental blog today! Alternatively, if you’re looking for access to innovative property management services, contact one of our property specialists today to find out what My Rental can do for you.
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