R&W tackle tariff increases on a regular basis and apply realistic increases taking into account a number of factors.
Please Watch our short video as our Property Managers walk you through.
Hello, thank you for taking the time to view our short video. These clips are put together to share information about best practice holiday management. My name is Brian Priebe, I'm a holiday property manager at R&W Noosa Holidays and today we are going to visit the process and value of tariff or rental rate reviews.
Last week I took a call from a holiday property owner who is listed with a local agent asking about our management service. Over the course of the conversation I noted the current rental rate appeared to be well below market value. When I asked when the last ren
t review was done, the caller took a moment to consider and after a time replied- never. Never, despite 4 years of excellent occupancy and booming tourism growth in Noosa.
I really wasn't too surprised. You see part of a proper tariff review is a comparative analysis of competing properties. Over the past 2 years of tariff reviews we've noted that our competitors are reluctant to raise rental rates.
There are 2 primary reasons why agencies do not conduct regular tariff reviews:
1. A proper tariff assessment is a difficult and time-consuming exercise. Many agencies do not have the resources, time or inclination to undertake this task.
2. Agents are naturally fearful that some guests may be upset by increases and occupancy will drop off.
We at R&W tackle tariff increases on a regular basis and apply realistic increases taking into account a number of factors. By applying well considered increases, we know that occupancy will not be impacted.
My colleague and fellow Property Manager, Chrissy Davis, lead he tariff review this year. I'll hand it over to her to go through the methodology we take.
Hello, my name is Chrissy Davis and I’m also a Property Manager for Richardson & Wrench.
As Brian mentioned, when talking tariffs, we take into consideration a number of deciding factors, including what upgrades, if any have been made to a property, the occupancy percentages between owner and guests, and how does the property compare to nearby properties listed with ourselves as well as other agencies.
So, if a property has been recently renovated and, has high guest occupancy and we know is in high demand, we increase the tariff. the amount of increase depends on other factors such as proximity to the beach, is it fully air-conditioned, does it photograph well etc.
There is strong demand for holiday letting properties in Noosa and surrounds we want to get the best possible income for owners, so we prepare a competitive market analysis comparing similar properties from not only our portfolio but also other agencies.
Properties are important investments to our owners and we know there are many vital aspects involved in renting a property successfully. Income is only one of many of those aspects, but we do know it is a very significant one.
Thank you for taking the time to watch our video today. we are always happy to assist with your holiday rental needs. Even if you do not have a property in our portfolio, we are still happy to chat. Contact Brian or myself anytime