Home Company Blog
Why rental appraisal is important
By: Brianna Wereszczuk
April 11, 2024

Landlords play a pivotal role in supplying housing to the private sector and with a proportion of landlords choosing to sell, many properties have been taken off market.

With one of the most challenging rental market cycles for some time, there is a lot of pressure on landlords to ensure they provide the right property for the right price.

Much of the discourse surrounding the current rental market has a focus on tenants, more specifically the challenges they face in obtaining and securing a rental property. This concern of course extends to landlords, property managers and the whole community.

The challenge of making ends meet, covering expenses and preparing for often unknown events and expenses is felt throughout all communities.

Along with interest rates and insurance premiums, rental prices have increased on the whole throughout the country over the past few years, with some areas reaching critical levels leaving many renters moving towns to secure property within their budget.

Setting the right rent rate is crucial for landlords but can sometimes be tricky.

Landlords are also feeling the effects of interest rate rises, with mortgages repayments increasing, and rising insurance premiums meaning the cost to own an investment property has changed significantly over the past years.

Ensuring the outgoings of landlords are met, as well as budgeting for maintenance – both the expected and unexpected – is just as important as remaining competitive in the local market and ensuring your property is not overlooked.

It can be challenging and frustrating sometimes to find the right balance, which is why your property manager can help advise on setting the right asking price which will not only attract tenants but provide you with a long-term strategy for your investment.

During market cycles, ensuring your property remains competitive is vital. This may at times mean keeping rent the same, rather than increasing. If your property is not competitively priced with similar properties in the area, it may mean the difference between a tenanted property and a vacant property.

Along with providing sound advice based on many years of experience in monitoring market cycles, your property manager can provide advice on ways to improve the value for tenants. A good property manager will advise on what is best for your long- term investment, and their wealth of experience of the local market will be indicative of your property’s success as an investment.

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Written by
Brianna Wereszczuk
Brianna has been a valued member of the RE/MAX Advanced team since 2017 and in this time she has developed an incredible...
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