Price Your Rental Right, Kalamunda, High Wycombe, Forrestfield
Hi, everyone! Justine Valender from Centurion Real Estate in High Wycombe.
Talking today a little bit about price. If you’re a landlord out there and you’re choosing an agent,you are obviously wanting to get an idea on what your property will rent for in this market. I just want to give you a few tips when it comes to choosing your agent in terms of seeing how they are presenting that price range to you and how they are backing it up.
Because if you are over pricing your property in this market, here in Perth it’s really going to cost you a property to sit vacant, and probably the biggest thing I’m seeing at the minute is agents are actually under pricing!
They are under pricing properties because they are wanting to just go out and do one to two homes open, spend minimal time and resources out of the property and trying to lease it as quick as possible. `
Now, here’s the thing. There’s definitely a balance. I’m actually an investor myself. I don’t believe in overpricing your property. I think it’s a real shame when I meet with a client and a landlord and I go through all our services and I finish with where I think their property should sit in the market. I always do quite strategic pricing. I’ll come back in a minute on how I do my range on a property.
But when I go and see that they’ve gone with another agent, I’m seeing it is priced $50 to $60 over what I’ve put on. I’m just saying, “Oh, no. It’s just such a shame.”
Look, I know it’s truly tempting. I know when an agent can come out and they’re putting that amount on. You’re just thinking, “Well, that would be fantastic.”
What you’ve got to look at is every agent should be bringing what is called a market analysis report, when they come out and meet with yourself. A market analysis report should be showing you a snapshot of what’s rented in the past four to six weeks. That gives you a little bit of an idea. But, here’s the thing in the market at the minute is that the price unfortunately are continuing to drop.
When I show it to my landlord, I’m saying, “Hey, look, here is the market analysis. This is where I think your property is going to sit price range wise. But I just want to let you know unfortunately that was six weeks ago. We may be looking at little bit less.”
I just want to bear that in mind if you are looking at a CMA report (Market Analysis Report) , make sure that the agents made it really tight range, because anything really over four to six weeks is irrelevant, I’m afraid. Just make sure that they’re not showing you properties that are rented 12 months ago because thats definitely a different market.
You want to just make sure that the agent has a good understanding of what’s happening in the area. It’s not just with what’s happening in that suburb. You just need to have that general feel for what people are wanting and what’s going quicker and what’s in demand.
I had a couple of properties in Kalamunda and they rented within two weeks. They had workshops, swimming pool, bigger blocks next to school so I’m finding that those properties are renting a little bit quicker.
In Forrestfield, High Wycombe there’s a lot of subdivisions that’s gone on. Those units can sometimes just take a little bit longer to let and they’ve experienced the price reduction in that area.
I actually have an investment property on Cyril Road in High Wycombe. I was getting $480 per week for that property. Fast forward 12 months, that’s now renting at $440 per week. We have definitely seen the reduction there as well.
Coming back to under pricing a property which I can’t believe that I’m actually seeing this at the minute, again, it comes back to an agent who wants to have good statistics. I totally understand. I’m investor myself.Every week a property sits vacant is costing you.
But at the same you should also be getting and asking what that property is worth in market value. There is no point in under pricing a property and doing yourself out of $50 per week.
I just want to let you know what is happening. So just again interview the agent. Ask what their knowledge is. Ask what’s rented. What have they just rented in the area? What went quick? What is going a little bit slower, as well as just basing it on a market analysis report.
I really hope that little bit of information helped and should you need an appraisal or wanting a value on your property, please don’t hesitate to give us a call at Centurion.