As a property investor, you want to obtain the most value for your money while also attracting tenants by keeping the rental price within the market range in your neighbourhood. The following 5 points can help you determine how much you may charge for your home rental.
1. Property Condition
People are willing to pay more for newer things in better condition, this applies to homes in particular. If your property is in poor condition, it is unlikely that the tenant will pay the full amount that you are asking for. If the property is in relatively good condition, a higher rent can still attract potential tenants. It is also worth considering that New Zealand and Australia has rules in place to which the standard of the property must be in before it can be tenanted.
2. Property Type
The maximum amount of rent you may charge will mostly depend on the size and nature of the property you’re renting. Is it a townhouse or an apartment? Is your home intended to house two individuals, one family, or several families? Considering the number of bedrooms and bathrooms in your house is important since it will affect both your rental rates and the kind of tenants your property will attract.
3. Desirable Qualities Of Your Property
Demand plays a major role in determining rental property prices. Your rental property will likely be in more demand and command a higher rate as a result of having more desirable qualities. Take note of the kind of property features that tenants look for when deciding on your rental price.
Some desirable qualities are property with lots of storage space, easy-to-maintain home features like durable floorings, stain-resistant carpet and a fully-equipped kitchen. You may charge more if your property has a modern kitchen with all of its appliances in good functioning condition. You can also fetch a higher rental price if your property has good accessibility to amenities such as public transport, schools, hospitals and shopping malls.
4. Research On Rental Price In Your Area
Always check market rents for your area and property type. If you set your rent significantly below market value, you may miss the opportunity to make more money from your property. If the value is too high, you risk having a longer vacancy period for your property without any tenant.
5. Use Rental Appraisal
If you are still unsure of how much rent to charge, you can always refer to the rental appraisal that we provide for all Williams Corporation developments. You will be well-informed about where your property sits in the rental market. For example, you can earn up to $530* per week when you invest in one of our new Christchurch CBD apartments! (*Figures based on the rental appraisals that we provide.)
If you are still looking to invest in a property and desire to start earning and getting rental yield, connect with one of our Client Consultants now and we will guide you through your property investment journey.