Your Rental Appraisal Guide

Whether you are a seasoned investor or just starting your research into property investments, there is no doubt that you would have heard of a rental appraisal. Most property managers offer rental appraisals, rental valuations and/or property appraisals and we know it can be hard to navigate through all the conflicting information some property managers may provide so this is your ultimate guide into understanding rental appraisals so you can make the best-informed decision about your investment property.

If you want to skip straight through the information on understanding rental appraisals and gets yours now, contact us here.

 

What is a rental appraisal?

A rental appraisal is an educated estimate of the property’s value from a rental point of view. This is not to be confused with a valuation, which is commonly used in legal matters and requires a qualified valuer to conduct, an appraisal will give you an understanding of the rental market price you should be charging and in most cases when you request a rental appraisal, you will receive a rental appraisal report that details the factors behind the expected rental price provided.

 

Do you need a rental appraisal?

Where you have just purchased a new investment property or you want to make sure the current rental is in line with the current market, a rental appraisal is a crucial step in your investment property journey. They help take the “guess work” out of your investment strategy by keeping your rental competitive and ensuring growth and returns.

To ensure you are getting long-term growth out of your property, you need to have a good understanding of what is it worth and not only then will be you be able to achieve the right amount of rent in line with the current market, you will more likely attract and retain quality, long term tenants while also decreasing the amount of time your property may sit vacant.

Although there is a way you can do this research yourself and there are online tools and calculators to help you, getting a professional rental appraisal is the best way to achieve the most accurate results.

 

When do you need a rental appraisal?

There are a few different times in your investment journey when we suggest you get a rental appraisal:
• Purchasing a new investment property
• At the end of a current lease agreement
• You want to ensure you are getting maximum returns

The property market is constantly changing and evolving so it is important that you stay up to date with what is going on. If you have a current property manager you should be able to ask them (or better yet, they should proactively let you know).

 

What should be included in your rental appraisal?

• Suburb profile

The location of your investment property is vital in it’s potential rental return. Your report will consider proximity to public transport, schools, shops and restaurants while also looking into historical data for the suburb and its surroundings to get an idea of current rental trends.

• Property offering

Your appraisal will then consider what your property has to offer to potential tenants such as the number of bedrooms, bathrooms, car parks, amenities, size of property and in most cases, the report may give you details of the property’s rental or past sales history.

• Comparative analysis

Using the location and property information, your report will contain a comparative analysis of similar properties in the area to see what they rent for. It can also consider what makes yours stand out from the competition.

• Market conditions

To get an accurate idea of your property value, your rental appraisal should consider the current market conditions. Property market trends such as vacancy rates are a significant factor in evaluating the competitive place in the real estate market.

• Estimated rental value

Using all of the above information, your rental appraisal will recommend what you should consider as your weekly rental value.

At Harbour Quays, we are committed to helping Gold Coast investors successfully navigate the rental market and we are passionate about ensuring you receive the very best in skills and service. Our team takes the time to understand the needs of each and every one of our property owners and we work endlessly to ensure those needs are met.

We are here to help you achieve your investment goals.

Want to find out how much your investment property could be worth and what can we can do for you? Request a free rental appraisal today to find out.

 

Disclaimer: This blog post is not to be considered legal advice. If you are seeking specific legal advice we suggest that you consult a legal professional before making any significant decisions in this regard.