What rent should you charge for Perth Investment Properties?

Buying an investment property in Perth is a big decision to make – but so is deciding on the price of rent you want to charge. This could make or break your investment.

Picture this – you’re a first-time investment property owner, ready to put your property up for rent. Ideally, you want some bang for your buck, so advertising a high rent would let you do this, right?

Well, there’s actually many things to consider when you ask yourself what’s the right amount of rent to charge, from house inclusions, to location and more.

Read the latest from Thought Leaders, a leading property management team in Perth on what is the right amount of rent to charge for your investment property.

Get to know the Perth Property Market

What’s the median rental price in the area? This is a great place to start, and obviously cater it to what your property is. You wouldn’t set the price of your 1-bedroom, 1-bathroom apartment up against the rental price of a 4-bedroom, 2-bathroom house in the same area.

Setting the price too high? You’ll risk scaring off potential tenants, who’ll scroll pass your real estate listing in search of a more price-appropriate property.

Setting the price too low? Yes, you might find a tenant quicker, but are you missing out by not maximising your returns?

The Perth property market is always changing, so choose property management in Perth who know the local market.

What is your Perth investment property?

What is the type of property you want to rent out? How many bedrooms, bathrooms, parking spaces does your property offer?

One parking space may be okay in an inner-city suburb, or if the property is situated close to public transport links. However, one parking space in the outer Perth suburbs with little to no public transport may not be what potential tenants are looking for.

If your Perth investment property is new or recently renovated, this is attractive to potential tenants, who may pay for good quality property touches like a new in-built dishwasher or oven.

Property adjustments and amenities

If there’s little to no interest in your rental property, then it might be time to bite the bullet and lower your rental price. This is often the case in areas with more rental properties and prospective tenants.

However, a shortage of rental properties in the area may allow you to charge a higher rent.

These close-by amenities often work in a landlord’s favour and allow you to ask for more rent:

• Schools,
• Transport,
• Cafes,
• Bars and restaurants.

It’s easy to be greedy, but a rental price that’s asking too much, or waiting for ‘the right tenant’ inevitably means you lose potential income.

There’s no easy answer on how much rent to charge for your Perth investment property. Location, property type and the Perth property market are all key factors to consider. Asking too much is counter-productive and will elongate your time market and vacancy periods, but too low, may negatively impact your cash flow.

For a clear-cut evaluation of your rental price strategy, you need the Thought Leaders in Perth Property Management.

Want to know more about Perth Property Management? Contact Thought Leaders today to find out how much rent to charge, finding the perfect tenant and property manager for your investment property.