Rental Appraisal

Discussion in 'Property Management' started by David Chang, 24th Nov, 2016.

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  1. David Chang

    David Chang Member

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    Folks, is it an acceptable practice to ask REA for rental appraisal from their rental manager? And if so, is there really much point in getting one from them?

    I mean what is the likelihood that they over quote the potential rental income, so that the negative gearing isn't looking that bad?
     
    David Chang, 24th Nov, 2016
    #1
  2. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Yes it is standard practice to ask, and yes, overquoting is common. Perhaps ask the selling agent to arrange a rental appraisal for you, but also get one from another agency.
     
    JacM, 24th Nov, 2016
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  3. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Also ask them to list the comparables, including recently rented & vacant including DOM
     
    Agent30yrs., 24th Nov, 2016
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  4. Propertunity

    Propertunity Well-Known Member

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    What is the purpose of the rental appraisal?
    For formal finance approval? (in which case the selling agency is your friend)
    Or you really want to know what your rental income would be? (get a few opinions and comparables)
     
    Propertunity, 24th Nov, 2016
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  5. David Chang

    David Chang Member

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    The latter; I want to know the true reflection on what the negative gearing be.
     
    David Chang, 24th Nov, 2016
    #5
  6. Propertunity

    Propertunity Well-Known Member

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    Oh you want the truth.......Lionel Hutz will explain :)
     
    Propertunity, 24th Nov, 2016
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  7. Chrispy

    Chrispy Well-Known Member

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    Go online to realestate.com.au and check out asking rents for same area, similar property. Then you know how many are for rent in the area and can watch how quickly they are let.
     
    Chrispy, 24th Nov, 2016
    #7
  8. dabbler

    dabbler Well-Known Member

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    Look up what is for rent and rented recently.
     
    dabbler, 24th Nov, 2016
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  9. Perthguy

    Perthguy Well-Known Member

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    I have found asking prices to be very misleading. A property in my area was listed for $320 and rented for $295. That's a big difference for calculating negative gearing
     
    Perthguy, 24th Nov, 2016
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  10. Chrispy

    Chrispy Well-Known Member

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    Perthguy. It can work both ways. I had a house advertised but there were so many wanting to rent it the agent let it at more than I was expecting !!!
     
    Chrispy, 25th Nov, 2016
    #10