Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

Opportunity knocks for RE/MAX in Sydney growth suburb

April 03, 2020Grace Ormsby

A new real estate offering will soon be making its home in Sydney’s Macquarie Park. ...

REB_top100agents
top 10 agents

1

ALEXANDER PHILIPS

Year of Experience: 17

Support Staff: 5

Residential Properties Sold: 208

Total Value of Residential Properties Sold:

$614,864,500

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment
Yes, I've been the victim of workplace bullying
No
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
agent using smartphone 2 reb Agents after more tech solutions amid COVID-19

New research has highlighted the growing need real estate agents have for innovative technology solutions. ...

Agents after more tech solutions amid COVID-19

New research has highlighted the growing need real estate agents have for innovative technology solutions. ...

computer 850x400 How agents can best utilise proptech

With digital disruption showing no signs of slowing down, agents are being encouraged to utilise technology, rather than ...

searching the internet reb Real estate boss shares marketing tactics

The owner and CEO of an elite Queensland agency has revealed how being conscious of both print and digital marketing has ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

Calls to class real estate as ‘essential’

In the event of further restrictions in response to the coronavirus, an industry group is calling for real estate servic ...

forrent house reb 1 Eviction freeze only fixes one side of rental equa ...

The government is being urged to implement immediate rental subsidies for tenants bearing the brunt of COVID-19. ...

Peter Koulizos reb Wage subsidy to ‘relieve financial pressure’ f ...

The federal government’s recent JobKeeper wage subsidy is set to significantly help relieve rental and mortgage stress ...

Bradley Beer reb New online calculator to ‘revolutionise’ prope ...

In what’s being described as a market-first, BMT Tax Depreciation has launched a new online calculator which it says w ...

EVENTS
REB Awards 2018 logo 01 1
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
rpm logo latest

4 common mistakes when setting rent

18 December 2019 Bianca Dabu
4 common mistakes when setting rent

As most investors rely on rent to take care of their expenses, how can they make sure to set a rental rate that will allow them to thrive in the market and ultimately grow their portfolio over the long term?

While setting rent sounds easy enough, experts strongly encourage investors to engage property professionals in order to maintain good cash flow and serviceability throughout their journey.

According to Eezirent’s Diane Bukowski, one of the best ways to determine the right rental price is by looking at comparable properties in the market.

“You can get a real estate agent to do this but be prepared for the hard sell of the agent trying to get the management listing, or you can get an appraisal online but be aware that you are providing free property and personal data that can be sold to marketing companies,” she said.

Advertisement
Advertisement

Further, the rental price will always be subject to the current level of supply and demand in the area, she said.

What to avoid when setting rent

Ms Bukoswki outlines the most common mistakes that landlords and investors make when setting rent:

1. Automatic rent increase

Ms Bukoswki reminds investors that rental price should always be in tune with the “current market”.

That being said, they must learn to avoid the habit of taking the existing rent and increasing it by a certain percentage without assessing the current market, especially if the property has had an extended vacancy or a long-term tenant decided to move out.

Good investors are always in touch with the current status of the ever-changing property market, according to her.

2. Refusing to decrease rent

Smart investors are willing to decrease rents if that is what the market dictates.

Often, the lack of tenant applications means that rental rate could be way higher than what the market demands.

Refusing to decrease rent may cause negative impact on the portfolio as the damage of an extended vacancy is likely to be greater than simply cutting down on a couple of bucks worth of weekly rent.

“Every week a landlord holds out for their desired price is a direct and expensive hit to the return on investment,” Ms Bukoswki highlighted.

3. Comparing apples with oranges

When looking at comparable properties to help come up with the right rental price, Ms Bukoswki advised investors to use properties in the same location and with similar features, including the number of bedrooms, bathrooms, and car spaces, as well as the age of the property and surrounding facilities.

4. Using rent to recover expenses

Contrary to popular belief, setting rent is an economic decision, not a mathematical one.

According to Ms Bukoswki: “The monthly cost of the property investment to the landlord cannot be the basis of determining the rent. There is no point setting the rent at $450 a week because that’s the amount needed to pay the interest payment on the loan.”

“The tenants do not take that into account when making their economic decision to apply for the property. In fact, they don’t care."

‘Tenant mindset’

At the end of the day, Ms Bukoswki strongly encouraged property investors to think like tenants instead of landlords.

According to her, the keys to an accurate rent is to review the the current market, use free online tools available and start with a broad search of comparable properties before narrowing it down to specifics.

Her final advice to investors: “Listen to the market when the property is advertised and respond to what it is saying.”

4 common mistakes when setting rent
forrent house reb
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.