How do you justify your rental fee based on the current market?

Discussion in 'Property Market Economics' started by paper, 10th Jun, 2015.

  1. paper

    paper Member

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    9th Jun, 2015
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    WA
    Like in Perth, the current market is very flat.

    The property manager or real estate agents may tell you the range of the rental market based on the location, demanding and so on.

    How do you pick up a rental range to promote your property and get the quick response? Should you reduce 10 or 20 dollars based based on the rental market to attract more people to come to view it?

    Some agents suggest to install air conditioner or add some furniture to attract some potential tenants. Some said it was not necessary.

    Could anyone has some suggestion as I am a bit confused for if I should rent it out as an unfurnished or partial furnished one? Or if I have to install a air conditioner as the unit does not have one...

    My question is due to the current market, different renovation and so on, how can the agent or even myself know what will attract some tenants to put applications for it.

    My aim to rent it out as soon as possible.

    Thanks
     
  2. perthguy

    perthguy Member

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    I have a renovated 3x1 in Cloverdale. When I listed and set the price, I went through every house for rent in the area and then picked a price the same as similar properties. The problem is that if you go too cheap, people will think there is something wrong with it. Set your price too high and you price yourself out of the market.

    Mine has been on the market 5 weeks with one application. The prospective tenant was not suitable. I have already dropped the price once and offered a week's free rent. Still no interest. It's a tough market with 30 similar properties in the area for rent at a comparable price. It's hard to be patient when you are losing out on $400 per week rent. :(

    All you can do is go through the current listings a price a little below comparable properties but not too far below IMO.
     
  3. lizzie

    lizzie when i grow up ...

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    back in the painting clothes
    I price at around 5% below comparable properties in the area ... I personally think getting a good tenant in quickly is worth more than $10-20/wk in lost rent for 6 months ... as apposed to losing $300/wk rent
     
  4. paper

    paper Member

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    Thanks Lizzie.
     
  5. sash

    sash Member

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    I managed to get $390pw for a 305k build property in Mandurah (Lakelands) ...why because I custom designed the house to a wide demographic was growing.

    There are ways to different your property in any market...styling a property goes a long way...
     
  6. paper

    paper Member

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    Thanks for sharing your story.

    Mandurah (lakelands) in WA???