A rental appraisal is an excellent way to get clarity on your investment property's potential value and navigate the complexities of renting out your investment property.
Are you looking for a property price guide or a market assessment for your home? Getting an obligation-free investment and rental property appraisal with a local Kensington real estate agent will provide you with a property valuation estimate, including an assessment of your property, recent comparable sales or leased properties in the Kensington Market, and an estimated price and rental yield.
It doesn't matter if it's your first rental property and you're wondering how to calculate rent, or if you've been renting for some time and want to keep your rental competitive, an appraisal letter is a great way to eliminate the guesswork.
But what exactly is a rental appraisal?
A rental appraisal is similar to a property appraisal, except that it is focused on determining the rental price you should be charging for your property, not the homes for sale price. When you hire an agent to do a rental appraisal, the agent will make an analysis of the market, Kensington's suburb trends and activity, the property itself, and make recommendations on what rent you should charge on a monthly basis based on their analysis.
The options you have for a rental appraisal are pretty limited to a couple: your choices are to either get a property manager or a real estate agent to do the rental appraisal for you, or you can do it on your own.
Here we'll tell you all about your real estate options and how to calculate the monthly rent yourself.
A guide to getting a rental appraisal
Rental appraisals are the most effective way to set your house's rent price. There are two ways of going about it:
- Your property manager or a local realtor can provide you with an appraisal letter
- Calculate monthly rent by yourself
Through a local Kensington real estate expert:
When looking for a better idea about what your Kensington property is worth and what potential return or rental yield you could achieve, the first and best method is to get an appraisal from a local real estate agent.
Almost all real estate agents and property managers will provide a rental appraisal letter. Many agents and real estate agencies will offer this service for free.
It is worth going through a local Kensington property manager, real estate agent or a real estate agency, as they will make an informed and educated judgement on what your home is worth as an investment and rental property. In addition, the agent will look at all of the recently listed rental properties in the area, not just their own, and they'll provide a unique insight into the local Kensington market.
Going through an agent or property manager specialising in Kensington is critical, as they'll have the data and the experienced insight needed. Any assessment and figures provided by an agent will also be based on insight into the features of your property.
There are a number of advantages to asking a local real estate agent, property manager or even your current property manager directly for assistance. First, they have a greater understanding of you, your situation and the Kensington real estate market, which can help you make a more informed decision.
Calculate the monthly rent yourself:
It is relatively risk-free to obtain a free rental appraisal, so we strongly recommend getting a professional opinion. However, it is still perfectly viable if you prefer to do the research independently.
Getting a feel for the real estate market in Kensington can be a great way to learn more about the area and get to know the local residents, especially if you are interested in buying a property in the area either as a local or as an investment.
The thing about this method is that it requires a lot of research, and you might not have access to many of the same tools that property managers have, but if you simply want to learn more about rental property valuation, it may be worth your while.
The critical steps to do your own rental appraisal are:
- Look at your property's details
- Research the local market
- Calculate additional expenses
- Crunch all the numbers!
- Monitor your property's performance on the market
- Re-evaluate after 12 months
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Are you looking for an investment property appraisal? Request an Appraisal For Your Kensington Property or find the right agent to help you along your property journey.
Learn more about Kensington's local real estate market by visiting our Kensington Property Price, Investment and rental market Guide
Wanting to learn more about Investment properties and rental income in Melbourne Kensington? Then, check out our next article, "What is rental yield?"
To learn more about investment and rental property appraisals in Kensington, Melbourne VIC, visit The City of Melbourne's Property Valuations Page.