We automatically conduct rent reviews on all our managed properties either when a change of tenancy occurs or annually whichever is the shorter time period. The Residential Tenancies Act does allow us to alter the rent level every 12 months and we are obliged to give the tenants 60 days notice of any rent rise.
In order to establish the ‘fair market rental value’ of any property we firstly assess the rent levels of similar properties in similar areas and apply ‘pluses and minuses’ for variations in presentation and amenities. We also consult statistical information that is available to us both from within our office and externally via Tenancy Services which gives a good idea of whether the market is moving up or down at any point in time
Our objective is to strike a rent level that is fair to both the tenant and the owner and is in keeping with prevailing market conditions. If the rent level is too high we find that (a) the property is harder to let and (b) tenants move on fairly quickly to more equitably priced accommodation which, in both instances, creates vacancy problems and a greatly reduced return on investment for the owner. Conversely if the rent level is too low then the owners are again not maximising the return on their investment.
We are asked on occasions to supply lending institutions and individual investors with rent appraisals for loans and investment purposes. These appraisals have to be done by a licensed Real Estate Agent as there are some serious legal implications when members of the public rely on the information supplied. We are fully licensed and regularly carry out such work.