Rental Appraisal Sunshine Coast – Free Rental Appraisal

Many property investors wonder what the first step is in engaging a property manager. The first thing to do is to get a Rental Appraisal Sunshine Coast. I’ve found some investors are not sure what a rental appraisal is, so I plan to outline this here in this article.

RENTAL APPRAISAL SUNSHINE COAST

If you would like a rental appraisal on the Sunshine Coast, please reach out to me. A rental review is where an experienced property manager will give the owner an indication of the potential rental income on a property when it’s rented out. There are a few ways these can be done, and prices will vary depending on the circumstances.

REMOTE OR ON-SITE RENTAL APPRAISALS

The best property managers on the Sunshine Coast can give a property investor a rental appraisal remotely or by attending the property. The advantage of having them done remotely is that they can be done relatively quickly. The best property managers on the Sunshine Coast had paid access to services like RP data, which allows us to see photos of the property when it was last advertised. We can also see the size of the home, its age, the block’s size, the land’s slope, etc. Then we can run reports on comparable properties that have recently rented in the area, which show us the rental amount & dates, and how long it took to be leased. All this information allows us to get a good idea of possible rental income.

ADVANTAGES OF ON-SITE RENTAL APPRAISAL

Sometimes property investors prefer a remote appraisal as they may not want the current tenants to be disturbed, or they may be considering buying the property or have just bought it. It still needs to be settled, so access is limited.

The advantages of an onsite rental appraisal are the property manager can see the home’s condition, any potential maintenance, any improvements that have been made, and, more importantly, the house’s feel.

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So which is better? Onsite, without a doubt. The only reason you would be OK with a remote appraisal is if you wanted an idea fast or to avoid alerting or bothering the current tenants or property manager. I recently did an isolated inspection for an owner who just had a tenant move in 8 weeks prior. The tenant is paying $600 PW. My research showed they could have secured around $680 PW. This landlord must pay $4,000 because the property manager got the potential rental income wrong; this happens all the time.

WILL EVERY PROPERTY MANAGER’S RENTAL APPRAISAL BE THE SAME?

No. It will all be different. The truth is even the best property managers on the Sunshine Coast need to learn what rental income is possible. If you had five property managers give you a rental appraisal, they would all be different. Which one is correct? Knowing which rental assessment is accurate is almost impossible. It’s tempting to engage the property manager who has suggested the higher amount, but choosing a property manager because they guessed the most elevated amount is a mistake. Select the property manager you believe will help you maximise your return. As the owner, you can also ask your property manager to advertise for more. 

HOW TO KNOW IF THE RENTAL APPRAISAL IS CORRECT

Only the best property managers on the Sunshine Coast will give you a detailed Comparable Market Analysis (CMA). It is a detailed report showing what other similar properties are renting. If a property manager has told you your investment will rent for $800 PW and has yet to supply you with a CMA. But another property manager has indicated $650 PW and given you a detailed CMA; you should be asking the $800 PW property manager how they came up with that figure & what evidence they can show you.

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SHOULD YOU JUST RENT YOUR INVESTMENT FOR LESS

Sometimes I have clients that, well, I only need to get $600 PW to cover overheads & would be happy to rent for that. As an investor, it’s an odd thing to say. It’s like BHP wanting to give you some big dividends and saying you’re not interested because you don’t need them. Many investors need to realise that if they only need $600 PW but can get $680 PW, they need that extra $4,000 a year to fund maintenance. Eventually, carpets will need to be replaced, ovens will fail, hot water tanks will fail, and insurance will go up. Hey, interest rates may go up one day too.

RENTAL APPRAISAL VS ADVERTISED PRICE

Suppose I appraise a property for around $750 PW. I like to advertise for $800 PW for the first week because we can constantly adjust if there is no interest at $800 PW. Recently I told a property investor to budget for around $1,350. They asked if I could advertise for $1,800, and it rented for $1,600. So it’s always a good idea to advertise for a little more at first, as you can constantly adjust if needed. 

HOW LONG WOULD A RENTAL APPRAISAL BE VALID FOR

Suppose I appraise a property now. It’s probably valid for around six months. But when a property investor is ready to go to market, it’s best to re-evaluate the situation then. While at the time of writing this, rents are going up. There have been times when rents have also gone down. 

HOW ARE THE PEAK TIMES OF THE YEAR

Here on the Sunshine Coast, Dec to Jan are peak times. People are moving into the area and want to be settled in before Christmas or before school starts. These are the best times to be advertising to get rent. There is a lull over Christmas and New year, so you would want to avoid being on the market from 20th Dec to 3rd Jan.

ANNUAL RENTAL APPRAISAL REVIEW

Every year I review my mortgage interest rates. I review rental income too. It’s common for property investors to need help to keep up with market rental increases. If you are a property investor and think you may need more profit because your investment property may be under-rented, having a free remote appraisal is a brilliant idea. 

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I’ve had some inventors missing out on as much as $200 a week in additional profile, which is about $10k a year or $30k over three years. After all, property investing in property to build wealth and ensuring you are getting market rent is an essential part of that.

SHOULD A LOCAL PROPERTY MANAGER DO THE RENTAL APPRAISAL

I service the entire Sunshine Coast. I’m qualified and experienced to be able to give a rental appraisal anywhere on the Sunshine Coast. I would only be able to do this for Brisbane or the Gold Coast. If you invest in Peregian Springs, you can get a Peregian Spring agency to do an appraisal. Still, I am also very familiar with the area, as I am with all Sunshine Coast suburbs.