So, you have just found that perfect investment property and the real estate agent has told you what they think it may rent for.
It all looks good and this may very well be the case.
However because we only deal with managing and renting properties many of our clients prefer to get an unbiased opinion from us.
At Metro property management we rent literally hundreds of properties each year and we know the rental market. This gives us a very accurate idea of what comparable properties are renting for, and what potential renters are willing to pay for a rental property.
The market place
The state of the current market place plays a big part in your properties ability to achieve your investment needs, because the market place will normally decide the rent you get and how quickly you get it.
This is based on the sales theory of “supply and demand”
There are generally three types of market:
A tenants market
If there are lots of rental properties on the market and not many tenants, it is considered “a tenant’s market”, as they can pick and choose what they want. Under these conditions, tenants are likely to try and negotiate prices and terms, in order to get the best deal. Typically lower rental prices and higher vacancy rates are seen in this type of market.
Conversely, if there are fewer rental properties on the market and more tenants, we see a change in market conditions to “an owner/landlord’s market”. Under these conditions, typically higher rental prices are achieved with less negotiation.
A balanced market
This is when the supply of rental properties is meeting the demand, and rental prices are neither rising nor falling.
So how much will my property rent for?
This question is a bit like how long is a piece of string? Without first seeing a property it is almost impossible to accurately say where the market would see that asking figure. What Metro property management can give you is a range showing other similar properties, what they have rented for and how they compare to your property. We will work with you to set the asking figure using this accurate market data. This will help to ensure that you maximise your return while on the same hand getting your property rented as quickly as possible.