An Easy Two Step Process To Find Market Rent For Even The Most Unique Property
Getting to know the market rent for your property in New Zealand is as simple as following a 2 step process. Step 1 is checking what the market rent is in your area on the Tenancy Services website, I have shared the link below. There you will find the low, median and upper quartile rental amounts achieved by the different groups of rental properties segmented into apartment, units and homes with 1 bedroom, 2 bedrooms, 3 bedrooms and so forth. Here you will get a very good guideline of rent in your area based on bonds lodged over the previous two month period. It is important to note that these figures are at least a month old, and if the market is buoyant, then it will be important to also check out what the asking rent is on the market today. That brings us to the second step.
Step 2 is to search Trademe.co.nz for similar rental properties being marketed now for rent in your area. This is a great way to find out how much stock is available, as this impacts the supply and demand. For example if you have a 3 bedroom rental. Then it’s important to know how many 3 bedroom properties are available for rent in your area today. These are the homes your rental will be competing with, and you will have to price yours accordingly. You can then arrange the Trademe list from highest price to lowest price, and see the rental range. The asking rent on Trademe is usually higher then what is on the tenancy services website. Because the rental amounts on Trademe are not necessarily the rental amounts achieved. Some listings will try to get a higher rent in the first couple weeks of marketing, and if the market response is poor, they will start to reduce their asking rent to a level that generates the right level of interest. While on Trademe, it is important to select the right property type in order to see the correct rental range. For example a 3 bedroom unit will be worth less then a 3 bedroom home.
With those two steps done, you should now have a good ballpark figure of the market rent for your property. Now comes the tricky part, where skill and experience play a bigger role. Fitting a price to your property. Not all 3 bedroom properties are the same. Special features that add value are important to note. Such features include rumpus rooms, second living rooms, second bathrooms, a sun room, a fully fenced section, a double garage with internal access, several heat pumps, pet friendly or all of the above. This is where you would then start placing the property in the respective price brackets - lower, median or higher end. If there are a lot of special features, then it is possible for a 3 bedroom property to be asking the same rent as a lower or median level 4 bedroom property.
Now that you have decided on your market rent, the next step is achieving that rent with good photos, a walk-through video and being available at short notice to show prospective tenants through your rental property. Now we are getting into marketing and tenant vetting which is where an experianced property manager shines, and an overworked property manager could cost a landlord vacancy, as well as further losses if they have a poor tenant selection process. The condition and presentation of the property plays a big part here also, so always keep your rental in good condition.