Homeowners in the Adelaide Hills, specifically Mount Barker are located in a prime rental property market to find a tenant for their houses. One of the difficult things rental property owners face is accurately determining the rent they should charge tenants for their home. The process of evaluating the proper price for your rental is called an appraisal and it is one of the important tasks leading up to finding your tenant. There are three main parts to consider for a rental appraisal in the Adelaide Hills and they are a sales comparison, unique features, and the possibility for change.
How Do You Value a Real Estate Rental Property?
Start with the comparative market analysis (CMA).
This appraisal process compares similar homes over an ample amount of time that have sold or rented during that period. The sales marketing analysis relies on similar units of measurement to compare values such as price per square metre. For instance if a 200sqm house is renting for $400 per week, the price per square metre (sqm) would be $2.
This price can then be loosely translated to another rental property, but as each home and location are different it is not a catch-all solution. At this point you would have a basic idea of the renting value of your property, but it is important to hire a certified real estate agent for an accurate appraisal. Using a certified appraiser helps to reduce risk of fraudulent appraisals leaving you with one less thing to worry about.
You can use this estimated value of your rental property as a basic foundation, but you will still require a professional appraisal for accuracy and peace of mind.
What Other Factors Does a Professional Rental Appraisal Take Into Account?
Along with the comparative market analysis your professional appraisal agents will analyse more details of your rental property. Some of the areas they will look into include specific features and benefits of your property compared to others in a similar area.
Examples of unique rental property features and benefits:
- Proximity to desirable areas
- Exceptional decor, furnishing
- Fencing around the yard
- Ensuite Bathrooms
- Beautiful view
- High quality appliances
The real estate agent conducting the appraisal for your rental property may also look at the overall condition of the house and property as an indicator of how well it is being maintained. The condition of the market can also affect the valuation of your house, as vacant rentals can reduce the overall value of rental properties when demand is down in the area.
Remember That Prices Can Change Over Time.
Keep in mind that all rental properties values can fluctuate throughout the year and over time as fashions and peoples’ lifestyles change. Think about how important proximity to public transport and good internet speed is these days. Once you have your professional appraisal you are ready to start searching for tenants.
How Do I Get A Rental Appraisal?
If you are in need of a rental appraisal in the Adelaide Hills or Mount Barker please give us a call at 08-8398-1630. You can also fill out our Rental Appraisal Form for a free, no obligation appraisal. If you are located outside of Adelaide, in another Australian city or abroad, contact your trusted local real estate agent and ask about getting a current appraisal for your rental property.