Getting the rent right!
Ensuring your rental is correctly priced has always been an important factor to ensure success in the process of finding the right tenants in the shortest possible time frame. In today’s market, with a larger pool of available rental properties, ensuring your property is positioned at the right rent level is even more imperative.
The team at Just Property Management have come up with some insights into how you can assess the rent levels appropriate for the current market.
Market Rent Statistics – To start off, check the tenancy services market rent statistics. (https://www.tenancy.govt.nz/rent-bond-and-bills/market-rent/). Rent levels can be broken down by suburb and property types/sizes and give an insight into what properties have rented for. Be aware that the stats are based on the previous six months worth of bond lodgement data, meaning that the data can be slightly out of touch with the latest market trends.
Comparable properties – Take a look at what's currently available online via the usual portals. TradeMe & RealEstate.co.nz are good places to look at the current stock in your area and will give some insights into the asking rents of properties. Bear in mind these may not be what the property ends up renting for so look at how long the property has been on the market for. If it’s been listed for a while, this gives an indication as to whether the property is potentially overpriced.
Property condition – Factor in the condition and features of your property. If you have outstanding maintenance, older décor and fixtures or a limited pool of potential tenants in your area, you need to consider this when determining the correct level of rent.
Target market – Whether your property will appeal to professionals, families or students will have an impact on what level of rent is reasonable for that target market. Understand the costs involved in running your property and current living costs vs income for the tenants.
Your bottom line – What does your property cost you to break even? If you don’t know this already you should take some time to work it out. Our handy calculators page can help with this: https://www.justproperty.co.nz/owner-calculators
Get it right first time – The first week or two of marketing is where we tend to see a good level of enquiries. The property is a new, fresh listing and will be shared with potential tenants via watchlist update emails and will be appearing at the top of newly listed search profiles. Missing out on this initial flurry of activity due to overpricing can cost you a few weeks rent by the time you adjust the rent, plus you would have missed out on that initial impact on the market.
Talk to a property manager – Property Managers are constantly working on the front line of the market, dealing with tenant enquiries, demands, responses to rent increases etc. We have a great understanding of the local markets we operate in and what types of tenants are active in the market. Speaking to a few local property managers can give you an insight into the conditions of the market.
Just Property Management specialise in the management of properties across the Wellington region, we have a very experienced team of property managers who are in tune with the changing landscape of the rental market in Wellington. We offer free rental appraisals and advice on the current market conditions.
Contact us if you need guidance or help determining the right rent for your property.