Whether you’re about to put your property on the rental market, invest, or rent a property, it’s vital to figure out the property rental value before you make any moves. It doesn't help that the rental value fluctuates and is often shaped by various factors. But even if you don’t understand yet, know that rental value isn’t random, even when it looks random from the outside.
Weekly Rent Isn’t the Whole Story
Many rental listings feature a weekly rent. The number may be odd, such as 760 dollars a week, but in most cases, there’s a reason for that. Rental value is usually a messy pile of tiny details stacked together that form the current price.
That said, it’s best to stop treating rent like it’s a fixed truth. It changes constantly, and as a result, two units in the same street can have a $150 difference just because one smells damp near the laundry and the other gets decent winter sun in the kitchen.
Learn the Difference Between “Expensive” and “Worth It”
A rental can be expensive without being overpriced. You have to look at all the aspects of your rental to determine if that’s the case. A place charging more rent might already include decent internet and proper insulation. You might also get access to secure parking and working air conditioning. If you’re lucky, you might even get a landlord who fixes things quickly. That's the value.
Meanwhile, if you go for the cheaper option, this seemingly better option will end up costing you more. It’s because now you have to buy heaters or battle mould. So, think beyond the weekly number. A slightly pricier place could be better and cheaper long-term.
Use Online Tools Properly Instead of Blindly Trusting Them
Online estimates are useful. But they’re useful only if you treat them like a starting point instead of a sacred prophecy. A good rental appraisal online tool can help you compare nearby listings and track suburb trends. You can use it to notice whether a property is wildly overpriced. If you’re new to renting or investing, and you still don’t have any experience in this field, a good rental appraisal tool could prove useful.
But still, keep in mind that those tools can’t smell mould. They can’t tell you if the neighbour revs a dirt bike every Sunday morning. They can’t tell you whether the apartment feels dark and depressing at midday. So, use data, then use your brain. The people who get burned are usually the ones relying entirely on spreadsheets while ignoring obvious real-world problems standing directly in front of them.
Inspect For As Long As You Can
When you find a good-looking property, make sure the property is also good-looking and functional in person, too. People will often go for the most flattering angle because that’s what sells. If during inspections the house doesn’t match the online photos, it most likely doesn’t match the rental price either.
Rental value drops hard once people inspect a property and realise the photos were doing Olympic-level heavy lifting. With that in mind, you should always inspect water pressure, natural light and storage space. To save energy, make sure the window seals let no air in nor out, and make sure the internet and phone signal are good. Smells near carpets and sinks should also get some attention. These tiny annoyances become massive when you live somewhere full-time.
Understand Why Older Properties Sometimes Rent Better
New builds aren’t automatically superior, even though many people believe that getting a newer home is better long-term. But that new home is often built with cheaper materials, and let’s not even talk about the execution and planning because many people can hear what their neighbour is watching on TV due to thin building walls.
Some modern apartments look fancy for six months and then start falling apart. Besides thin walls, there are tiny rooms, no storage, and fake timber finishes everywhere. Older properties, however, are more durable, and they have bigger living areas and better airflow. Their construction is more solid, and the large balconies only add to the appeal.
Conclusion
Understanding property rental value may be intimidating at first, but we promise that it gets much easier once you stop looking for one magic answer. While it’s important to ensure you’re paying the right amount or that you’re getting a cheaper deal when possible, it’s also vital to think about the quality of living, and include all aspects during evaluation. Only then will you be able to determine real rental value and whether you’re willing to pay that price or move on.
