Pricing Your Rental Property

by Kate Fuller, Senior Property Manager, NPB Adelaide

 

There are many contributing factors to consider when putting your rental property up for rent, including:

  • The condition of your property.
  • The size of your property.
  • Where your property is located.
  • Who you would like to see living in your rental.

Pay particular attention to the following four factors before arriving at your decision.

 

1. Consider Comparable Property.

Is your property similar to others in the same area? Take a good look around to determine current availability and what rental amount is being asked for these similar properties.

Also take note of properties that have been leased recently and how long it took them to be leased.

 

2. Who is your Target Market?

It is important to be very clear about who your ideal tenant is. If you overprice your property you may turn away some good prospects, and if you underprice the property you could end up attracting the wrong type of tenant.

Once you determine your target market it will be much easier to find a pricing “sweet-spot” that will serve you well.

 

3. Timing is Crucial.

“When” you put your property up for rent also plays a big role.

  • If you have a “lifestyle” type property, located near the beach, you are likely to receive a nice price premium leading in to the Summer months.
  • If your property is located in a sought after school zone, you may well receive a premium leading up to the new school year.

Timing also relates to the amount of similar properties available at the one time – it becomes a simple case of supply and demand that will dictate your rental returns.

 

4. It’s Your Call!

It’s important to get the balance right between maximising your rental returns and finding tenants in a timely manner (remember that a vacant property is not creating any income for you).

Get the balance right and you will be well on your way to being a satisfied landlord, with ideal tenants.

 

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If you enjoyed this post about pricing your rental you may also be interested in another recent post by Kate “5 Steps to Selecting the Right Tenant“.

If you’d like any assistance in setting optimal pricing for your rental, or the ongoing management of your property we’d be happy to help.

Read more about our property management service here and contact us to arrange a free, no obligation rental appraisal.