September 13th, 2018
When you get your rental property professionally assessed, you learn about both your property in particular and the greater rental market surrounding it.
The market value of your property could be quite different than the price you paid to purchase the home many moons ago.
If it’s your first time renting out your property, or if you’ve just had a long-term tenant move out of your multi-residential property, how can you be sure you’re charging the market rent?
Getting a rental property assessment can give you some concrete numbers you can use to better advertise your rental property.
You want to compete with the other rental units on your street or in your neighbourhood. But what you don’t want to do is price your unit too high, because that could lead to a vacant unit, and a vacant unit leads to lost revenue.
The amount of rent you charge tenants should be reflective of the property’s market value. On top of the market value, you'll need to understand your property’s neighbourhood, location and demand. A professional assessment can help you land on a sound, competitive figure for your rental unit(s).
If your rent is unreasonable, you might not be able to find a tenant willing to pay it. Similarly, if your rent is too low, you may disqualify yourself from some property tax breaks.
Perhaps you have dreams of charging the neighbourhood’s top rent, but your property lacks in the finishings department.
A rental property assessment will tell you where you can get the highest return on any renovations or upgrades. Usually, the kitchens and bathrooms go on to determine the price of a rental property.
Paying for small upgrades or renovations will eventually pay for themselves once you start collecting a newly justified rent. You must think like a tenant in order to attract them.
If you’re offering tenants something that others in your neighbourhood are not, you are probably justified in charging a higher rent.
Think about packaging things like parking, hydro, internet, laundry or extra backyard space in with the rent. These extras can help your property stand out above and beyond other rentals in your neighbourhood.
A monthly price jammed with extra amenities could attract tenants who want the whole gamut, but may not want to pay pesky individual bills. See what your realtor suggests in this capacity.
Getting professional advice is only beneficial to the tenancy process.
Real estate experts are familiar with your local property market, know what tenants expect from the rental price of a unit, and, can offer smart solutions and fixes that can maximize your return!