Rental appraisals are regularly conducted by the NextGen Property Mgmt team on behalf of landlords who are looking for them for a few different reasons. Some are simply curious. They want to know whether their rental property is priced correctly according to the current market.
Others require them for their bank, even though most banks and mortgage brokers have tools that can provide a range. On our experience, these system generated appraisals are often inaccurate as the rental market changes sometimes by the day.
The last set of requests, comes from savvy investors. The look for regular and independent advice, as it is the only way to maximise their return on investment.
A rental appraisal outlines, as a particular point in time, the range of rent an investment property could generate. It is important to understand that Rental Appraisals are very time sensitive and only valid for a limited time. This is because, unlike sales valuations which are based on a number of parameters including historical information, the rental value a property can attract, relies explicitly on the state of the local market on that particular point in time.
For example, a brand new 2 bedroom apartment somewhere in Sydney, might have been rented for $580 this time last year, but this year a brand new development has launched, and the property is now competing with 25 brand new 2 bedroom apartments, priced at $580 or even $560 per week! This is because of the sheer downward pressure oversupply creates! In this instance, rental appraisal would probably be in the $540 to $560 per week.
Alternatively though, let's assume the same property and scenario, except this time around, there are only 2 other comparable properties on the market! In this instance, you property would probably be valued around the $600 per week mark.
The point is that the rental market is very time sensitive and in a large extend, relies on the supply on the market at any given time!
It is an extremely valuable document that will include useful information, such as current market trends and conditions as well as what similar properties are being rented for in the area and the surrounding suburbs.
There are many reasons to get a rental appraisal.
Of course. You have nothing to lose. First of all it is obligation free and there are no costs involved. It's an opportunity not to be missed. Our Rental appraisals are done with the highest degree of care and all done via desk research with is very accurate.
When we conduct a Rental Appraisal, we look at a number of factors, including
Or rental appraisals are prepared in most instances within 48 hours, and they are legal and formal documents produced in our letterhead.
Our rental appraisals are delivered by email and are valid for 30 days. If customers would like to discuss the outcome, we are more than happy to have a phone or even face to face conversation, all at not cost to the requestor.