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Why it’s important to get a rental appraisal for your property?
Celia Burbery, Auckland Property Management’s General Manager, in this video talks about why request appraisal for rental properties can be so critical to landlords and property investors with regard to rent levels to maximize returns and retain good tenants.
Rent Increases for Existing Tenancies Benefit from a Rental Appraisal
The legalities around rent increases for existing tenants are:
- Tenants must receive 60 days notice
- The rent may be increased every six months
In Auckland, rent has increased by 4% over the last 12 months. Given a property that is renting for $500, a 4% increase is $20 per week. Over a year, that is an increase of $1000 which tenants should be made aware of, and landlords will not want to miss out on!
Request Appraisal to Avoid Rent that is Too High
Though you do not want to charge a rent level that is too low and miss out on returns, you also do not want to charge too much rent either! It can be tempting to ask for a high price on a rental property, but there are pitfalls to charging exorbitant rates on properties when the price is higher than acceptable market rates. Cases like these may secure desperate tenants, and also run the risk of a Tenancy Tribunal hearing. This type of challenge at a Tenancy Tribunal can incur a penalty of up to $1000.
Using a Rental Appraisal to Secure Good Tenants
By ensuring that your property is being offered at an appropriate market rate, landlords are better able to secure and retain good tenants. Also, by maximizing the best level of rent, landlords ensure the best returns by setting appropriate increases, as the property increases in value to the market. Auckland Property Management ensures that landlords have rental appraisals and rent reviews at least every 12 months.
Request Appraisal for free through Auckland Property Management
If you have any doubts about the rental levels of your properties, Auckland Property Management offers free rental appraisals. This will help you as a landlord to:
- Ensure you are maximising your rental returns
- Avoid vacancy rates, down times and loss of rent
- Avoid disputes at the Tenancy Tribunal
Requesting a Free Rental Appraisal
If you would like to get a free rental appraisal on your new or existing properties, it is as easy as filling out the above form and one of our Business Development Managers will get in touch with you.
For any related questions that you might have, feel free to contact Auckland Property Management Ltd in Auckland who has over 20 years’ experience managing properties all the way from Bombay to Orewa. Call us at 09 638 2500 or use the form above with your question.