How We Assess You Property's Rental Rate

Rental Market Appraisals

Do you want to know how much rent you should be getting for your property? Discover how much your property is worth on the rentals market and how to maximize your returns?

Owning a rental property is more complex than ever. The effort put in by you as the landlord to provide a sound rental property to your tenants should be rewarded with a generous rental return.

A proper rental appraisal will ensure that you are charging the correct rent to your tenants, help to secure and retain quality tenants, and help to shorten any possible downtimes between tenants.

A Rental Appraisal is a detailed report of the earning potential of their investment property, based on current and concise market conditions. It is a vital tool that will provide a landlord insight into how much their property is worth on the rental market. Best performed by an experienced and local professional, a good rental appraisal should give a detailed explanation of rent values are determined by current market trends, rent levels for other similar nearby properties and relevant property data.

Defining a Profitable and Appropriate Rental Rate

So, how do property managers set the rates for rental units? It is no guessing matter. There are several ways in which a property manager sets rental rates. Let's look at a few:

Fair market value
Competition in the area

Cost of repaying the mortgage, if applicable

Figuring out what a rental property is worth takes some savvy and a good understanding of the local real estate market. Many websites can estimate fair market value. Think of fair market value as the price a home would sell or rent for in a perfect world.

From there, the property manager can determine the rental fee. Typically, a property manager will calculate the rent price based on a percentage of the rental or home's value. Although 1% is an excellent place to start, most rental prices are set based on a range of between 0.5% and 0.8% of the property value.

Other factors can affect the rental rate. Access to a swimming pool or fitness center may increase the rent price. Parking and a doorman are also attractive amenities that add to the amount.

Conversely, lack of security, no elevators, and no reserved parking can detract from the appeal of the property and lower its rent price potential.

Competition in the local area can also affect the price of a rental or lease unit. While it is tempting to change exuberant rent, a property manager must look at the local area with an unbiased eye.

By perusing the real estate websites in the local area, one can gain a good understanding of the typical rental rates. It is best to locate properties that are similar in size, proximity, and amenities. Then, take three of the comparable properties to determine the right rent to charge.

Scheduling Pre-Rental Maintenance

Getting your property ready to rent can be a huge task, but can add so much value to your investment. Once we determine your appropriate rent rate, and assess the property, we can plan and oversee the repairs neededs to maximize your properties earning potential.