One of the benefits of owning an investment property is the extra income it generates. With this in mind, we asked the team from LITTLE REAL ESTATE about Rental Appraisals and how savvy investors can use them to maximise a return on investment.
An important step in achieving this is to get a rental appraisal conducted professionally.
First, it is important to understand what a rental appraisal is. A rental appraisal details what level of rent an investment property might generate.
It is an extremely valuable document that will include useful information, such as current market trends and conditions as well as what similar properties are being rented in the area and the surrounding suburbs.
There are many reasons to get a rental appraisal, here’s the top four:
One of the main benefits of a rental appraisal is that they are generally free. This makes them a risk-free option that every savvy property investor should be taking advantage of.
A property management specialist will collect and share information that can directly help your financial future and offer it to you at no cost. This truly makes getting a rental appraisal an opportunity too good to miss out on.
Knowledge is the key to success.
As any good salesman will tell you, the key to success is to know your product. A benefit of getting a rental appraisal conducted is that you will gain a better understanding of your asset.
Rental appraisals can open the door to conversations with a property specialist about your property and help you find out what can be improved upon. By taking measures to amplify the appeal of your investment property to potential tenants, you can justifiably increase the rent and therefore your return on investment.
Property specialists can also give you information about other properties in the suburb of your investment. You can use this information to see how your property is performing in comparison.
Rental appraisals can also be useful if you are considering purchasing more investment properties by gaining insight into potential returns.
They’re not just for owners.
Rental appraisals aren’t just for those that own an investment property. If you’re considering becoming a property investor, you can get a rental appraisal done to understand what your return on investment will be.
The appraisal could also help you assess your purchase when seeking a loan. Knowing your potential rental income can help you understand the affordability of your repayments.
Securing professional advice and partnering with experts improves long-term results.
By having a rental appraisal conducted by a real estate professional, you will be forming a very important connection that could potentially help stabilise your financial future.
The best property managers take the hassle out of owning an investment property and make it a far less stressful experience. They will handle and assist with difficult processes like tenant selection and all issues surrounding rent. Their main goal will be to make your investment property as profitable for you as possible.
Little Real Estate is Australia’s largest independently owned real estate company. If you are looking for a manager to look after your investment property speak to Angela Paradise on 0429 495 269. To get your Management Fees FREE for 6 months click here.
General Advice Warning: The advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of these objectives, financial situation or needs, before following the advice. We recommend that you speak to your accountant and financial adviser to help you determine whether direct property investment is right for you.