Rental appraisals are such a crucial part of the sale process but can be overlooked by some agents. Here at Avnu, it’s a complimentary service we provide for all of our clients because we know how valuable a rental appraisal can be in a sale.
Here’s what you need to know about rental appraisals:
What is a rental appraisal?
A rental appraisal is the educated opinion of a Property Manager regarding how much your property would be worth, should you or the next buyer choose to lease it. It is often provided in a formal, signed letter for later use if necessary. You can also receive a desktop rental appraisal with Avnu’s free Property Report.
Why is a rental appraisal important?
Rental appraisals are first and foremost, important for investor-buyers. They provide insight into what their potential returns could be.
“If a buyer is planning on purchasing the property and then leasing it out, a rental appraisal is definitely a contributing factor in their decision-making process,” states Avnu’s Head of Property Management, Nick Georges.
“It also gives them a sense of how much they could earn, and potentially give them greater borrowing power with lenders.”
The rental appraisal has the ability to improve loan applications for investors, as the bank has a clear way of understanding how the buyer will service their loan in the future.
Nick Georges also states that buyers who are not interested in leasing out the property immediately can still benefit from a rental appraisal.
“Even buyers who aren’t looking to rent out the property immediately will appreciate a rental appraisal. It gives them a good idea of the value of the home and also helps them consider their options for the future, such as if they want to downsize and lease the current home.”
The added bonus of a rental appraisal…
Another great reason to get a rental appraisal is to start a relationship with a property manager. Even if you’re not looking to rent right now, having a property manager on side could one day be useful.
“The Property Management relationship often starts at the initial purchase of the home, even if the buyer doesn’t want to rent it out just yet. We always touch base to see how they’re travelling and update them on the returns they could be getting from rent, which is useful for our clients.”
It’s a great idea to get a rental appraisal before you begin open for inspections at your home. This way, you can provide rental appraisals with your OFI pack to any groups that come through your home.
If you’d like a rental appraisal for a listed home or for your current home, get in touch with Nick Georges and the LJ Hooker Avnu Property Management Team.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker Avnu will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.