Getting the rent right

MORE than 90 per cent of first-time property investors overestimate the true market rental for rental properties, a recent survey by the Property Buyers Bureau has found.

The bureau’s managing director, David Devenish, said many areas in Perth currently had an oversupply of rental properties and many landlords were discounting rents or offering incentives to attract tenants.

To address this dilemma the Property Buyers Bureau has launched a new service titled Rental Wise, designed to determine the correct rental income for an investment property.

“Determining the correct rental income for an investment property is now a key consideration for every first-time investor when making a decision about buying an investment property and we believe this service will prove very popular with investors,” Mr Devenish said.

He said the service would help real estate agents avoid problems when an investor failed to achieve a promised rent.

“It will also be a major assistance to the real estate industry because very often investors make a decision about buying an investment property based on verbal advice from the selling agent who generally does not have any experience in the rental market,” Mr Devenish said.