One of the primary concerns of new landlords and homeowners who are thinking of purchasing an investment property is how to determine the rental value of a property.
Location is always a key determinant of rental rates. For example, rental valuation in Balmain may not be the same as rental valuation in Rozelle. Other key factors can drive the rental price up. We’ll go over each one of those below:
1. Number of bedrooms
The number of rooms in your property is a major determinant of your target demographic. Single-bedroom homes or units tend to attract yuppie types or young couples. Two-bedroom homes tend to attract newly married couples or ones with one child, or even single professionals working from their home office.
Larger properties with three bedrooms or more usually attract families with children and pets. But if your property is located close to a university belt, then another option would be to rent it out to students who want shared accommodation.
2. Condition of the property and amenities
The condition of the property includes the age of the property and whether or not it has been renovated. Amenities like air conditioning, connection to the National Broadband Network, a dishwasher, floorboards, tiles or carpets, appliances, solar panels, etc. can all affect the rental price. The better the condition and amenities, the higher the rent.
3. Local rental trends
Your property’s rental price should also reflect (or be reasonably consistent with) local rental trends. For example, one-bedroom apartments might have a typical rental range of $300 to $700 per week within the same locale, depending on whether the apartment has views, a car space, or is in a convenient and quiet location.
4. Lifestyle amenities
Lifestyle is a key determinant in tenant choice and therefore the rent your property can achieve. Factors that can help your property attract higher rents include:
- Proximity to interesting and useful shops or the local shopping centre.
- Cafés, restaurants, pubs, art galleries, museums and theatres in the area.
- Being close to community parks, nurseries, schools and universities (especially favoured by families with children and pets).
- Accessibility of public transport, including buses, ferry routes/stops, trains, etc.
- Walkability or being pedestrian-friendly (a priority for older people).
- Water views, for which renters will pay a premium.
- Off-street parking.
- Balcony or outdoor space.
5. Being pet-friendly
Pet-friendly residences for rent are scarce as many landlords won’t consider allowing pets.
However, a bonus with pet-owner tenants is they’ll happily pay a slightly higher rent and stay longer (as finding a new pet-friendly place is difficult). This is a bonus for the landlord, who will rarely have a vacant property.
Smart property marketing for Inner West properties
Aside from considering the above factors during a rental valuation on the Balmain Peninsula), our property managers know how to emphasise everything that makes your property great – in words and photos – when they market your property.
We ensure that we present your property online with high-quality property photography plus pictures of local attractions to spark the imagination of potential renters. And we can home in on the ideal renter for your property based on the lifestyle and amenities factors. After all, we’re marketing lifestyle, not just bricks and mortar.
We hope this article has demystified how we determine the rental price for your investment property.
Looking for help selling your home or renting your investment property? Our team at Belle Property Balmain support homeowners across Balmain, Balmain East, Birchgrove, Rozelle and Lilyfield. Feel free to get in touch for a no-obligation discussion or property appraisal.
