The rental market is generally buoyant in much of Queensland. Yet, the standard of property management Brisbane landlords receive is often inefficient. Of course, there are some excellent residential property management companies in the city doing a great job. However, you don't need to be a big landlord – with dozens of properties in your portfolio – to benefit from checking the market once in a while. If you do so, then you may well find that your current rent charges are beneath the market value. How can this be?
Why Is Undercharging An Issue and What Can Be Done About it?
To begin with, property managers have a vested interest in keeping things going as they are. Any recommendations they might make to landlords to raise – or even lower – rent prices come with an element of risk. Perhaps tenants will move out. In which case this can mean a void period when no rent is being collected. This will cut into the property manager's margin. For many, doing nothing is a sound business strategy. And – from their point of view – it is easy to see why.
The big downside for landlords is, however, that they are not maximising the earning potential of their investment. By undercharging rent, your own business may see a long-term dip in profitability. That can impact negatively on your future investment strategy. Of course, you can counter this by scanning the current lettings pages to get an idea of what the market is doing. Nevertheless, it is much better to make a fuller assessment of the situation. This is when a rental appraisal Brisbane landlords can be sure of can make such a difference.
What Are the Benefits of a Rental Appraisal Brisbane?
Firstly, when a rental appraisal is carried out for you, you will immediately learn whether you are charging your tenants the going rate or not. This does not mean you have to make any changes, of course. But, it puts you in the driving seat by better understanding how your current charging strategy is functioning. It may also help to inform you of future investment strategies by showing you where the greatest market growth is. This could be, for example, information that leads you to buy properties in one suburb compared to another. Or, it could lead you to invest in studio flats rather than family homes.
When it comes to a thorough rental appraisal Brisbane based landlords will also get a better idea of current vacancy rates in the areas where they own properties. This can also lead to improved business decisions. This is because it might lead you to alter the asking price for newly available properties based on how quickly – or otherwise – you expect your property manager to let it for you.
Overall, a rental appraisal service is free from business risk. It can only help to inform your operations as a professional landlord. If all having one conducted does is to confirm you are on the right track already, then so much the better. Of course, it could also demonstrate that you need to change direction. For example, it might mean opting for a more dynamic residential property management service company who will monitor current market trends more proactively for you!
In other words, you have everything to gain from one and nothing whatsoever to lose. Call Position One Property today.