If you're a landlord who's been asked to carry out a rent review, you may wonder how best to do it. What factors should you consider? How can you make sure the process is fair for all parties involved? And what can a consultant do to help? This blog will answer these questions and more about rent reviews.
How can a consultant help?
A rent review is a process used to determine the fair market value of a rental property. Once the rent review is complete, the consultant will provide the landlord with a report outlining their findings and recommendations. By working with a qualified consultant, landlords can be confident that they receive an accurate and unbiased assessment of their property's value.
What factors are considered during rent review?
The aim of a review is to ensure that the rental agreement remains fair for both parties involved. Therefore, a consultant will consider the following factors to provide a fair rent review.
The current market value of the property
This includes considering comparable properties in the area as well as any recent changes in the local market.
The condition of the property
This will be assessed objectively, considering things like age, wear and tear, and required repairs/maintenance.
The length of the current lease
A longer lease will typically result in a higher rent, while a shorter lease may warrant a lower rent.
The needs of both parties
The consultant will consider the landlord and tenant's needs when negotiating a new rent amount. For example, the tenant may be willing to pay a higher rent if they are given a longer lease term.
This process means both parties can be confident that the new rent amount is fair and equitable.
How can you prepare to work with a consultant?
As a landlord, you can do a few things to prepare for working with a consultant to conduct a rent review:
- Collect data on your rental property, such as rental income and expenses, to give the consultant a clear picture of your property's financial performance.
- Provide the consultant with access to your property so that they can assess its condition and market value.
- Determine your desired outcome from the rent review process.
Having this information ready in advance allows you to make the most of your consultation and ensure that your rent review goes smoothly.
Contact a consultant today to find out more.