This is a common question asked by our Astute Realty Landlords. It is important to remember that as your property manager, unfortunately we are not the gatekeeper of rental values. Rental levels, like sales values, are determined by the market.
In other words, what a tenant is prepared to pay for a given property in a given moment in time.To determine the rental value of your investment property at the start of each tenancy and during tenancy, we compare your property to similar properties on the market, most recently leased as well as consider the current demand for rental accommodation and the likely vacancy period.
During a tenancy, when considering renewal of tenancy rental prices we consider the above and the nature in which the tenancy is being conducted. For example, the market rent may be $10 more per week than the current rent on your property, but you have a tenant that is paying the rent on time and taking care of the property. With a situation like this, we will discuss with you the benefit of increasing the rent versus the cost in lost rental through vacancy if the tenant elects to vacate.
We review your rental a number of times throughout the year and when doing so we undertake the review with the above in mind. Naturally, we will discuss market conditions, the status of the tenancy and the scope for both current and future rent reviews.
As your property manager, we are also asked what the sale value of your property may be. When asked this question, we will refer to our sales team who will give you guidance and an estimate of the current sale value of your property. Please keep in mind that we refer you to our sales team not as an opportunity to convert your enquiry to a listing, but to ensure that you receive the most current and accurate estimate of your property.