How do you find that sweet spot? Understanding the market, tenant demand, and local trends is crucial, and with the right tools, it’s now easier than ever to stay ahead.
How Much Can I Charge for Rent?
Setting the right rent is a key decision for any landlord, whether you’re an experienced investor or just starting out. Pricing your property just right can make all the difference between attracting great tenants quickly or having your property sit empty. But how do you find that sweet spot? Understanding the market, tenant demand, and local trends is crucial, and with the right tools, it’s now easier than ever to stay ahead.
What can you charge?
Generally speaking, you can charge whatever rent you want, but it’s important that it doesn’t exceed fair market rent. If the rent is too high, tenants have the right to challenge it through the Tenancy Tribunal, where you’ll need to show that your rent is in line with similar properties in the area.
Know your competition
A good place to start is understanding how much demand there is in your area.
The closer your property is to public transport, schools, shops, or other amenities, the more appealing it becomes. Do some research to see how properties in your area are priced and where yours fits in.
If there are plenty of options available, you’ll need to be realistic to attract tenants.
Going on Trade Me and looking for similar properties in your area is always a good starting point
How much is too much?
While it’s tempting to set a higher rent to maximise your return, overpricing can lead to longer vacancy periods, costing you in lost income. A vacant property still costs you in terms of maintenance, mortgage payments, and more. The trick is to find the right balance between maximising your income and making your property appealing to tenants.
Our Market Insights Tool
To make this easier, we’ve got just the thing for you - our Market Insights Tool. It’s designed to give you all the rental data you need to stay ahead of the competition. With this tool, you’ll be able to make informed decisions about your property’s rent, whether you’re a seasoned landlord or just getting started.
Here’s what you’ll get with the Market Insights Tool:
- Current median weekly rent for your area
- Monthly or quarterly rent trends over the past year
- Rental supply insights to help you gauge competition
- Median days to rent, so you know how long properties stay on the market
- Average listing views and number of enquiries per listing
- Median rent for 1/2/3/4-bedroom properties, with year-on-year changes
Best of all, this data comes from Trade Me, ensuring it’s up-to-date and reliable.
Seasonality can affect rental price
Rental demand often fluctuates throughout the year. Mid-summer typically sees higher demand for rental properties, with more tenants "shopping around." Consider seasonality when pricing your property and creating your advert, as this can have a big impact on how quickly your property rents out.
Setting the right rent can be a balancing act, but with a good understanding of your local market and the right data, you can confidently make informed decisions.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
