Property management

Rent Reviews and Appraisals

We automatically conduct rent reviews on all our managed properties when there is a change of tenancy or renewal of a fixed term tenancy. All tenancies will undergo a rent review on an annual basis at a minimum.

Tenants can be given a rent increase 180 days after the last increase or from the commencement of the tenancy, but legally no earlier than this. We are legally obligated to provide 60 days’ notice of any increase (plus service time – up to four working days, depending on how the notice is served.) Our tenancy agreements allow for rent reviews on fixed term tenancies, although this is generally not necessary as the rent is reviewed when it comes time to renew.

To assess the fair market rental value of a residential rental property, we take a number of factors into consideration. These factors include:

  • The rent being asked for currently advertised comparable properties
  • Rent levels recently achieved through our office
  • Quarterly market rental statistics from the Department of Building and Housing (DBH)
  • Current rents in our managed portfolio
  • Demand for the type of property being assessed
  • Supply of the type of property being assessed
  • The location and quality of the property being assessed

These factors give a reasonable idea of the market rent level of a given property. The goal with rent reviews is to ensure that the rent is at a level where the landlord is receiving a rent level commensurate with the market, but not so high that the tenant feels compelled to leave.

Rental appraisals are essentially the same process as rent reviews, but with a view to letting or reletting a property on the market. The important thing here is getting the price right initially.

You will likely achieve a higher return renting the property at market rent (with minimal vacant periods) than you will asking a higher rent than the market is likely to accept (with the property potentially sitting empty and generating zero income for weeks).