How Much Rent Can I Expect to Receive for my Property
Getting the pricing right
Conducting the Right Research
If you've invested in residential property or are considering the prospect, it's important to decide how much rent to charge.
As your rent contributes - whether in part or full - to your mortgage repayments, it's realistic that you'll want to obtain a favourable amount.
However, you also need to consider what the going rate is in the market and the features of your property. These factors can impact how much rent you can receive.
There's a delicate balance between charging too little and too much, but with the right research you should be able to come up with the appropriate figure.
Take a Look Around the Area
The first port of call when it comes to setting rental prices is to consider what other landlords are charging in the area.
If you charge less than than the average rate in your investment property's street or suburb, you might attract a wider pool of tenants. However, you could also be short-changing yourself.
Likewise, you might be able to bump your rent higher than the average rate in the area. However, you should consider whether your property's features justify this. Raise the figure too high and you could out-price yourself from the market, while still having loan obligations.
Consider Your Features
If your property has ample living space, a backyard and a study, you're in a better position to scoop up a tidier rental income than a neighbouring property that's dingy and lacking a spare room.
Other features or property aspects that potential tenants might be on the lookout for include a separate laundry, room size and off-street parking.
Perhaps you've recently completed renovations on the rental property. If so, you might be able to charge a little more.
While you want to consider your outgoing expenses when coming up with a rental figure, including the property's mortgage and maintenance costs, it also pays to view the property from the eyes of a tenant and consider how much a reasonable person would pay.