What an appraisal tells you
A rental appraisal is an estimate of the weekly rent a property is likely to achieve in the current market. It is useful when you are deciding whether to lease a property, reviewing the rent or comparing management services.
An appraisal is an estimate, not a guarantee. The rent finally achieved depends on demand, presentation and timing when the property is leased.
- Use an appraisal as a guide, not a promise.
- Ask what the estimate is based on.
- Update the appraisal if the property or market changes.
What is assessed
An appraisal considers the location, property type, size, number of bedrooms, bathrooms and car spaces, condition, inclusions such as air conditioning, and outdoor space.
Most importantly, it compares your property with similar properties nearby that have recently leased, not only those still advertised.
- Location and property type.
- Bedrooms, bathrooms, parking and outdoor space.
- Condition, presentation and inclusions.
Getting the most accurate estimate
An appraisal is more accurate when the property is inspected in person or when you provide recent photos and details of any improvements. Tell your team about features that are not obvious from the outside, such as a renovated kitchen or new flooring.
Be wary of an estimate that is far above others. A rent set too high can lead to a longer vacancy that costs more than the difference.
- Share recent photos and details of improvements.
- Ask for the comparable properties used.
- Treat an unusually high estimate with caution.
Using the result
With an appraisal you can decide on an asking rent, plan any work that would improve the result and estimate your rental return. If the property is already leased, it can help you prepare for a rent review.
OTTO Agency provides rental appraisals for properties across Sydney. Request one through our appraisal page.
- Set an asking rent supported by comparable leased properties.
- Plan improvements that would make a difference.
- Revisit the appraisal before a rent review.
Let’s talk about your property.
Discuss your plans and the next steps with our team.
