Predicting future rental values are incremental to picking the right properties. Choosing 0% growth means you will target the wrong stock.
It’s tricky though, so why are Baron & Cabot so accurate in rental predictions, even years in advance.
At Baron & Cabot we have a management company responsible for all rental incomes, which means we have to get it right. Even when we predict 2 years in the future we are almost always banging on with our rental predictions!
But how can you do this yourself?
First of all, a sneaky way could be getting all the property information and calling around local management companies asking for what they would be able to rent the property out for (even if you haven’t bought the property yet).
Alternatively, if the property is completed look at comparable rents.
Finally, if you have not got any of this information you can look at rental properties in the area and 1 -2 miles around. If the property you are looking at is new then it will likely be in higher demand so focus only on new properties for rent.
We would always suggest speaking to a specialist though. Give us a call at Baron & Cabot and get some of the exact figures for rental numbers today and what to expect in the next few years.