What is a rental property appraisal?

A  guide to rental property appraisals

April 2023 | By Fall Real Estate | 10 Minute Read | Tags: Guide, Rent

In this article

  • Rental property appraisals ensure you are well-informed and help you to make better decisions when listing your investment property in the rental market.
  • A rental property appraisal is a free and no-obligation service for our clients and potential clients.
  • Rental property appraisals provide an estimated rental yield for investment properties.
  • A residential leasing agent will undertake the rental property appraisal and provide a formal appraisal, including a suggested rental price and the best steps forward for you and your investment.

Your investment property is one of your most valuable assets, so having a good understanding of what a rental property appraisal is and when a good time to have one should be at the top of your to-do list.

 

Rental property appraisals ensure you are more informed about the potential rental yield of your investment in the current market and help you make better decisions when listing your investment property in the rental market.

 

There are many advantages and reasons why you should get your investment appraised. We have written the following guide to rental property appraisals to help you understand what we do better!

Fall’s guide to rental property appraisals

What is a rental property appraisal?

A rental property appraisal is a way for you, the investor, to get an idea of your property’s current rental market value. If you were to list your property in the rental market on the day of the appraisal, the price given is an estimate of what renters are currently paying for a like property and suburb area.

 

A formal rental property appraisal (the written report) outlines your property's current and potential rental yield through our residential leasing agents’ expertise, extensive rental market research and experience in today’s rental market.

 

The formal appraisal includes:

  • the suggested rent for your next tenant
  • the cost involved renting through Fall
  • tailored tips to the property owner about how they may be able to increase the rental yield of their property
  • customised recommendations to potentially increase the chances of tenanting your property sooner

Process of a rental property appraisal

The first step in getting your rental property appraised is contacting one of our experienced residential leasing agents.

 

At Fall, we have three designated and highly trained residential leasing agents. They are all experienced agents, using their expertise to assist you in leasing your rental property.

 

Kim Gould - 0428 773 279

Kim goes the extra mile to achieve outstanding results for landlords.

To find out more about Kim, click here.

 

Naomi van Schie - 0476 829 898

Naomi is ambitious, focused and dedicated to assisting her clients in achieving their best outcomes.

To find out more about Naomi, click here.

 

Ariel Dao - 0488 588 052

With a deep knowledge of different property investment strategies, Ariel can strategise with you!

To find out more about Ariel, click here.

 

Having sound knowledge of all local areas of Southern Tasmania, our residential leasing agents will have your rental property leased and looked after in no time.

Two Fall Real Estate Leasing Agents conducting a Rental Property Appraisal whilst standing outside a Fall Real Estate office

Step 2: Book your rental property appraisal

When you choose Fall Real Estate, you can email, message or call to make a rental property appraisal appointment at a convenient time for you.

Step 3: Keep it real

You do not need to style, upgrade or renovate your investment before the rental property appraisal. Our professional and experienced residential leasing agents can help you decide which enhancements will add value to your rental yield and which will not - saving you money, effort and time!

 

Your residential leasing agent will also discuss with you the Government’s Minimum Standards for a rental property and how you can ensure to achieve this for your tenants.

Step 4: The property visit

The property visit involves one of our leasing agents getting to know you and your property. They will find out your goals and will view the benefits of your property.

 

Your agent will also be able to provide you with more information regarding legislative requirements for a rental property. There are minimum standards acceptable for leasing rental property in Tasmania.

Step 5: Prepare a formal rental property appraisal

The residential leasing agent will then prepare a written appraisal and email it to you with the following information included:

 

  • Details about property management with Fall (fees, charges, and services)
  • Recent market analysis
  • Rental yield
  • Management authority
  • The Government’s Minimum Standards information

 

Whatever your next decision, motives or goals are, your residential leasing agent will help bring them to life through their professional advice and invaluable experience in the current and forever-changing rental market conditions.

What is a rental property appraisal explained

Kelly Fall and Jo Brownless discussing a property in Hobart Tasmania

Let's look at what is involved in appraising your investment property.

The property size

Your residential leasing agent will look at the land size and structure, the size and layout of the house and the available parking to start the process of comparing these with like properties.

Location and neighbourhood

The location of your property determines the price range and what potential tenants are looking for in a property.

Building structure

In general, if the structure of your property is maintained and well-presented, the higher the rental yield may be. The residential leasing agent will also look at the size of the windows, amount of storage and additional features such as solar panels.

Main rooms

The first feature potential tenants look for is the number of bedrooms and bathrooms and the size of the living spaces. Your residential leasing agent will take note of the size and whether the bedrooms include built-in wardrobes or an ensuite.

The property's features

Knowing the features of a property is important not only for the rental property appraisal but also for the marketing campaign.  Property features can entice more potential tenants too.

 

The property features will, therefore, impact the suggested rental price.

 

The features your residential leasing agent will be looking for are:

 

  • whether the property has easy access
  • air conditioner or wood heater
  • room size and quality appliances
  • opportunities for extra spaces like a study nook or play area
  • additional buildings and sheds
  • NBN connection
  • solar roof installation
  • a swimming pool
  • garden beds and hothouses
  • fences and off-street parking, and
  • other desirable characteristics of your home.

Areas for improvement

Your residential leasing agent will use all the information gathered, including the property's condition - well looked after or run down, for example - and make suggestions for improvement to increase the potential rental price.

 

Some simple improvements or easy renovations may see your property’s rental yield increase more than you realise.

 

Our Fall Real Estate team can help organise quotes from reliable tradesmen that we work with to make the improvement process easier and more efficient for you.

Recently leased rental properties

The residential leasing agent will look at similar size and condition properties to help narrow down the potential rental yield.

 

Our experienced leasing agents will be able to inform you whether the recently leased properties are stable, increasing or decreasing in value and whether it is a good time for you to introduce your property to the rental market. Their advice will also depend on your goals for your property and future property purchase(s).

Rental market conditions

The current rental market conditions will have a considerable impact on what your potential rental price will be. Your residential leasing agent will look at the competition, the number of tenants searching for your particular property type, and the current condition of the rental market.

 

Many variables need to be calculated and considered in order for your leasing agent to provide you with a quality rental property appraisal with professional suggestions and advice.

When to get a rental property appraisal

Sometimes, knowing when you should get your rental property appraised is hard. Here are some common reasons our clients get an appraisal - even if they are not ready to rent their investment!

Property changes

If you have recently renovated or made significant improvements to your investment property, it is a great idea to get a rental property appraisal completed.

 

The property value often fluctuates during the different market phases. However, a renovation or improvement will often see your property increase in value when compared to other similar properties.

 

Alternatively, you may want to check that the property improvements you plan to undertake will significantly increase the rental yield. Thus, before making improvements, you should talk to one of our residential leasing agents to ensure you save time and money on unnecessary enhancements.

Looking to purchase

If you are considering buying a rental property, talking to one of our experienced residential leasing agents about the potential rental yield before purchasing the property will help you to make a more informed decision when purchasing your first investment or adding to your investment portfolio.

Family changes

Has your family grown, or have you downsized in family members? You may want a rental property appraisal if you are considering keeping your home as an investment and plan to upsize or downsize your family home. Knowing the potential rental yield will help you determine a plan for your future direction.

Location changes

Has your occupation location changed, or is the school you want your children to attend out of the school catchment area? There are so many changes to our life routines that sometimes, the location of our property no longer fits our life.

 

Whether to the gym, school, or work, a simple change to our routine can change whether a new place in a new location would be a better fit. Therefore, you may wonder if you should sell your family home or turn your property into an investment and become an investor.

 

To find out more about property appraisals, read our helpful article all about appraisals here!

Financial changes

Our priorities change as we go through life, and we value different things. Some clients thrive on the faster pace and business of a full-time work life, while others appreciate a slower pace and the family time it brings. These priority changes mean financial change is also most likely to occur for all of us.

 

Our clients often ask us for a rental property appraisal when they would like to decrease their financial burden and find a property worth less than their current home.

 

Overall, knowing the current market value of your property gives you some significant insight to make positive decisions about your most valuable asset and future aspirations.

Overall, knowing the current market value of your property gives you some significant insight to make positive decisions about your most valuable asset and future aspirations.

Set of rental keys sitting on a wooden table - Breaking lease Tasmania

Get my rental property appraised

The appraisal process is conducted when you are committed to renting your investment property. Our guidance at this stage can not only create better outcomes, but it can also save you considerable time and money.

 

Our residential leasing agents listen to your goals and aspirations at the rental property appraisal - your real estate journey starts here. A rental property appraisal will be significant in helping you make informed decisions.

 

When we look at your investment, our perspective and advice will focus on what we know will help you to reach your goals.

 

The process of getting an investment property ready for the rental market can be stressful and different for each of our clients. However, forming a professional relationship with your residential leasing agent from the beginning will build a strong foundation for your renting journey with Fall Real Estate.

 

When entering the rental market, it is vitally important the information you use to guide your decisions is accurate with the current market conditions.

 

You can contact us today and organise a free, no-obligation rental property appraisal for when you are next available! Simply read below to find your ideal Fall residential leasing agent, or call us on 6234 7033, so we can find the perfect agent for you, your property and your circumstance.

 

Kim Gould - 0428 773 279

Having received many referrals from satisfied clients over a career spanning 16 years in the industry, Kim builds a strong rapport with her clients and is always approachable, friendly and reliable.

To find out more about Kim, click here.

 

Naomi van Schie - 0476 829 898

Naomi has a diverse range of qualifications, including sales, operational middle management and communications.

To find out more about Naomi, click here.

 

Ariel Dao - 0488 588 052

With a Bachelor of Commerce and a diploma of property services, and being an investor herself, Ariel is extremely knowledgable and ready to assist with your leasing needs.

To find out more about Ariel, click here.

Update your rental property appraisal

Keeping your appraisal information updated is vital when you want to enter the rental market.

 

The rental market condition can impact tenant occupancy, the number of potential tenants needing a rental property, and the rental yield, affecting the best outcome.

 

Above all, developing a good relationship with one of our professional residential leasing agents can give you peace of mind.

 

At Fall Real Estate, our team can help you decide the best time to introduce your investment to the rental market, find the perfect tenant for your property and help maintain your investment.

Book your no-obligation rental property appraisal today!

Why wait? Contact us today, and let us make your dream a reality.

 

Your success is our success!

Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.

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