What is Rental Appraisal?
WHAT IS RENTAL APPRAISAL?
Rental appraisal is a free service provided by property managers. It is a property management professional opinion of how much rent a property might yield in the market. Property managers continuously rent out various properties in the market and often in the same area as your property. Based on your property size, location, the value of other properties in the area, and market conditions, property managers will give you an approximate value of how much the asking price is.
After an appraisal, property managements show documentation to support their appraisal. For example, you may receive a summary of similar properties and the asking price for the past six months. Along with summary documentation, you can also receive market trends and vacancy rates and showcase property tenant demand.
Property management Sydney consists of experienced property managers who are equipped to giving you a detailed report on your properties earning potential. Investigate the current market conditions, the rental value of properties in your area, and a thorough inspection of your property historical rent values.
Why get a Rental Appraisal?
1.It’s free and effortless
A forward-thinking investor would best use the insights and data from conducting a free rental appraisal.
You don’t have to worry about doing any of the heavy lifting as property managers will collect and present with you all the information and data required. This information can help you influence your decisions towards better financial goals and freedom. With no cost and almost no effort put into getting a rental appraisal, it is an opportunity that is too good to miss out on.
2.More knowledge = Better Decision Making
Gain a better understanding of your investment property/home with a rental appraisal. For the long-term health of your property, a good investor understands their property and its target market.
Apart from conducting a rental appraisal for you, property managers assist you with outgoing costs, such as insurance and other expenses. In addition, by understanding what charges are accumulated, a property manager can help you improve on them. Finally, implementing the recommendations made by a property manager will increase your chances of sourcing a high-quality tenant willing to pay the price that is best for you.
Property managers also provide you with additional information regarding what rental prices are given in surrounding suburbs. This information can give you an insight into how your property is performing in comparison.
If your existing property performs well on returns, you can also use rental appraisals to expand your property portfolio.
3.Rental appraisal sets realistic standards and Goals
You may have done a fantastic job purchasing a suitable property as a property owner. Nevertheless, a good property owner needs to make good decisions for your financial future without emotions dictating them. Conducting a rental appraisal through a property manager helps you set realistic standards and future goals.
As property owners, it is more appropriate to base decisions on more factual information that will enable you to position yourself with positive cash flow in the future.Tenants value reasonable prices, and a rental appraisal goes a long way in retaining quality tenants and minimising any downtime between tenants.
What does a Rental Appraisal look like?
A rental appraisal contains all the information relevant for a property manager to estimate what rent you might be looking to get from the tenants. Here is a list of all the factors considered leading to it:
The location of your property is significant while you are conducting a rental appraisal. The property manager looks at a load of factors when assessing a property and its relation to the location. Property managers look beyond just the property’s street and the local attractions nearby. They also investigate the school catchment the property is in, along with the available amenities and access to public transportation routes. Just because your property is not located in an area close to amenities or does not have access to public transportation routes doesn’t disqualify you from a good appraisal. Properties with quieter streets are considered equally desirable for tenants to occupy.
2.Your Property’s Rental history
Rental history provides a baseline on how much rental value your property has. Past rental trends of properties in your area indicate either an upward or downward trajectory, helping you decide that benefits your future cash flow. Access to such information can maximise the returns on your property.
3.Other properties that are being rented in your area
During the rental appraisal, the property manager will investigate the size of the block, structures on the land, and the relevant areas within the home. To simplify what was said before, property managers examine all aspects of your property, from the size of your living room, bedroom, kitchen in respect to the size of your entire house. This information is compared against other homes in your area that property managers use to understand the target audience or market.
4.Housing Market and Economic Conditions
Market trends and the overall economic conditions are the most significant indicators in determining what your property is worth. The property manager will examine the neighbouring property rents to understand what rate to present to you as a baseline.
Yet, the market trend is never set in stone as tenants would walk into your property and just fall in love. Therefore, these rates and prices are guidelines for a realistic standard but are not exact for your property’s rental value.