If you are a little confused by what you are seeing on the rental market, you are not alone. It looks like some people have been blind folded and are taking a stab in the dark or are literally pulling numbers from thin air to choose what price they are listing their properties for. We are also getting requests from new investment owners trying to achieve more than market value; however, a property is only worth what someone will pay for it, rather than what your mortgage repayments are.
None of these strategies have ever worked, and it feels like the right time to share “the how” and “the why” we prepare a property for market under our care.
I like to call it the 2 P method. Presentation and price. If the property has been presented well, ready for a tenant to move in and the price is on point, (meaning it is current market value) then you should expect to see your property rented quickly and well.
Presenting a property well means you have ensured it is ready to move into and has been fully cleaned from ceiling to floor with everything in between. It is important that the bathrooms are removed of all soap scum and are sparkling. The kitchen should be ready to cook in on the night they arrive so the ovens should have been cleaned and all the cupboards wiped out. Imagine arriving to the property for a viewing and the first thing you see is knee-high grass and gardens overgrown with weeds! All a tenant sees is a lot of hard work and ideally, no tenant wants to spend all weekend maintaining a yard. This is why every property needs to be presented to its absolute best when you are going to market.
When agreeing on the weekly rent, we will present the current market price. We have accessed local data that corroborates the amount we suggest. We have considered the current market as we are seeing on a day-to-day basis, what is happening in the field. Our team are trained and skilled at establishing the market value for you as an owner. There are many things that determine the value of a property, and the number of bedrooms is #1. A garage also adds value as does extra bathrooms and toilets. Is your property pet friendly? Is it a new build or when was the property last renovated or upgraded with fresh paint and carpets etc? The area your property is in also determines the value. Once we have all the information and are aware of the condition of your property, we can then give you a current market appraisal.
Why are these two things so important? When we market your property, we expect to have found a tenant withing the first 7-14 days. We pay for premium advertising to ensure your property is featured first for the first 7 days. To leverage from this, we ensure the marketing photos are showing the property in its very best light. People are searching by what they can afford so if you don’t have the correct market value listed, they won’t see your listing. We know within the first 48 hours of going live if your property is listed correctly by the level of interest received. The longer the property is listed online the less people will actually view it and that is why we focus on those first 7 days to ensure we have captured the interest of people currently looking to rent.
Having your property income producing as soon as possible is our ultimate goal and by ensuring your presentation and price are 100% will then ensure we are able to tenant the property quickly and well for you. It is also good to understand that today’s market where there is a lot of rental stock available, the tenants are applying for multiple properties at the same time and they are price sensitive, so will accept the best value for money property available. It’s a very competitive market so another reason why you need to be putting your best foot forward to ensure your property is highly sought after. Feel free to contact us if you have any questions about what you should be doing to prepare your property for market.