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Why do Rents Fluctuate?

By Emma Smith

If the rent for every property we owned covered the mortgage payment, we would probably be far more relaxed. But for the majority of investors this is generally not the reality. More investors than not, are relying on the weekly rent to meet payments and expenses and we understand the importance of achieving the highest possible rent.
The achievable rent on a property is no different to the sale of a property. It is determined by the condition or presentation of the property, inclusions, location and more importantly, the supply and demand of tenants at the time.
When determining the rent of a property we must take into consideration the properties on the market at the time. If the property becomes available during a period of time where there is low tenant demand and a high number of vacant properties the rent achievable can go down.
It is for this reason that it is important to know the market conditions and ensure that your investment property stands out over all others when trying to secure a tenant.

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