How Much Will My Property Rent For?
It’s the questions every investor wants to know. While starting with search of comparable properties on sites like realestate.com.au or domain.com.au is great to see what similar properties are being advertised for, it’s should not be the deciding factor of how your property is priced when going to market.
The agency you appoint to manage your property should have access to property data software that provides them access to produce a Comparative Rental Analysis (CRA) prior to your property being advertised for rent. A CRA will show exactly what similar properties rented for and how long they took to rent.
More importantly this report will show any difference between the original advertised price and the price it eventually rented for which can sometimes be quite a gap.
While current rental listings provide a view of competing properties to yours, they should not be the only source of data for how you price your property for rent. How much a property is advertised for is not always the price it rents for and sometimes the difference can be quite significant. It is important to also consider how long comparable properties are taking to rent, especially if your property is vacant.
Combining the data from a Comparative Rental Analysis (CRA) that your property manager has provided along with current rental listings is key to pricing your property to rent for the maximum amount the market is prepare to pay for it at that time.