Part of what we do is appraise properties for lease, explaining to Landlords about the current market conditions, supply and demand and what a fair rental price will be.
If we get the crucial element of price wrong from the start it can be the beginning of a long vacancy period and an unhappy client.
Having recently had success leasing a CBD apartment in less then 7 days, with the lease signed and Tenants moved in it just goes to show that price really does make all the difference.
Price your rental property to high and it will go stale and prospective Tenants will not see the value in your property over other similar ones on the market. It also doesn’t look great when the price is dropped by $5.00 -$10.00 per week and is on the internet too long.
Price it to low and there will be questions over why it is so cheap compared to the others, believe it or not this puts Tenants off just as much as an over priced property.
The key to getting the right price point is researching what is currently available in the immediate area, if it is an apartment block how many are available at the same time. What are the differences? Car space / extra bathroom/ views etc.
Once you have a rough idea of vacancy in the area, look at how long they have been on the market, if it is more than 4 weeks that is a good indication that the property is priced a bit high, so aim at pricing your property slightly less.
Remember to compare apples with apples – as much as you might think your investment property is the best on the market it doesn’t necessarily mean that the Tenants will feel the same so take a step back and be realistic about your asking price and you may be surprised at how quickly it can be leased.
If you would like more information or an appraisal on your investment property please feel free to get in touch.