Are You Under-Renting Your Investment Property?
In a market where rental demand remains strong across Greater Hobart, one of the most common questions we’re asked is — “Am I achieving the right rent?”
The reality is, many investment properties are currently sitting below market value without owners even realising.
Why This Happens
There are a few common reasons properties become under-rented over time:
- Long-term tenants where increases have been gradual or avoided
- Lack of regular market reviews
- Changing market conditions — especially over the past 12–24 months
- Conservative pricing to secure a tenant quickly
While stability is important, it’s equally important to ensure your investment is performing as it should.
What Does Under-Renting Actually Cost?
Even a small difference in weekly rent can have a significant impact over time.
For example:
An extra $30 per week = $1,560 per year
Over 5 years, that’s nearly $8,000 in lost income — without factoring in future increases.
Signs Your Property May Be Under-Rented
- You haven’t reviewed the rent in the past 12 months
- Comparable properties in your area are leasing for more
- You’ve had the same tenant for several years without adjustment
- Demand in your suburb has increased (which we are seeing across many areas)
Balancing Return and Tenant Retention
A common concern for owners is increasing rent and risking a good tenant.
With the right approach, this can be managed carefully:
- Increases should be fair, evidence-based and well communicated
- Timing and notice periods are key
- Gradual adjustments can often retain quality tenants while improving return
The Importance of Regular Reviews
We recommend reviewing your rental price at least annually — even if no increase is applied.
A proactive approach allows you to:
- Keep pace with the market
- Plan ahead with your investment strategy
- Avoid large jumps in rent down the track
A Simple Check Could Make a Big Difference
If you’re unsure whether your property is achieving the right rent, a quick review can provide clarity.
At MIX Property Group, we regularly assess rental performance for our clients and provide up-to-date market insights based on current demand, comparable properties and local trends.
If you’d like an updated rental estimate or simply a second opinion, we’re here to help. Contact us today