The latest Domain Rent Report for the June quarter 2021 showed the median asking price for a house in Canberra hit a record-high $630 per week. This was up 5% over the quarter and 10.5% over the year, the strongest pace of annual growth since 2007. This is great news for property investors, as high demand drives up the price.
The city’s rents remain the highest of any market nationwide, for both houses ($650) and units ($540). Since Christmas, landlords have enjoyed an increase of 16.1% for house rents in the ACT while unit rents are also up strongly by 8%.
But how do you know the best price for your rental property?
Professional and experienced local property managers, like RK Property Partners, have all the resources to help you understand the market trends for properties and tenants. It’s a balancing act, between reaching a price that maximises your investment but still keeping your tenants happy and your property occupied.
When property managers determine how to set a price for a home, they do market research and competitor analysis, such as:
- Rental pricing trends;
- Days on market;
- Surrounding suburbs;
- Leased rentals;
- A suburb overview, and much more.
You can also do research on your local competition. You can visit rental sites to see what other rentals are charging, comparing the size of their property, the location, and the amenities they offer so you can get closer to an apples-to-apples comparison.
Once you have gathered all of the information you need, you now can set the price to your rental property. It’s critical to set a pricing that you’re satisfied with, while also attracting the proper long-term renters.
Factors That Affect Your Property’s Value
When it comes to property value, it is affected by a number of external factors.
Location, location, location
When it comes to determining property value, your home’s location is one of the most important factors. A property’s value may increase if it is close to amenities such as public transportation, community facilities, educational institutions, cafés, restaurants, water bodies, and retail districts.
Size & Space
The size of the property is an important element to consider, because the number of bedrooms and amount of living space will either attract or deter tenants based on their own requirements. You can then set your price, for singles, couples, sharing housemates or family occupancy.
Maintenance and Upkeep
A well-maintained property will attract a higher value than a similar aged building with similar finish with little to no maintenance. If a house is in poor condition and shows signs of delayed maintenance and a general lack of preventative care, it is possible that the property will lose 10% or more of its appraised value. A property with chipped, fading paint, leaking gutters, and old carpets will struggle to compete with properties that have been well-maintained and properly prepared for market. Therefore, proactive and continuous maintenance and upkeep are important to keep the value of your property high.
Some essential home renovations can increase the value of your house and make it more appealing to potential renters. Most renters assess kitchens and bathrooms first when they are considering a purchase. If size permits, consider renovating open-plan kitchens with marble countertops or an island with bar seating, for cooking and gathering. A new en-suite or bathroom may boost the value of your home by 5%. Consider adding upgrades by installing a rain shower, designer hardware, or new tiles.
Rentals that come together with essential items will typically be rented out faster and for longer than those that aren’t. Modern, sleek appliances throughout the home may be that extra selling point. Consider spending just a bit on new items such as flat-screen, smart TVs, new air con units, a washer-dryer, or a state-of-the-art espresso machine, to sweeten the deal.
RK Property Partners are qualified, experienced Property Managers
RK Property Partners is your experienced and qualified property manager in Canberra. We are experts in our area. We can help you to get the right price for your rental property and moreover we can find the right tenants. We save you precious time by handling the renting process from start to finish making our landlords and tenants both extremely happy and satisfied.
To speak to one of our property management experts, contact us here.