Are you sure your rental property has the right rental price? Sometimes it can feel like a guessing game when it comes to deciding what you should charge for monthly rent.
We're here with some good news: you don't have to guess about the right rental rate for your property!
Setting the rent is not a guessing game or trial-and-error situation. With the right information and a plan, you can set the ideal rental rate for your property from the start!
With the correct monthly rent, you'll attract (and keep) better quality tenants. Plus, you'll make the money you should make on your property. The wrong rent price can be an expensive mistake.
Here's what landlords need to know about setting the rental rate for your Concord area rental property.
Start With the Market
Start with the location of your property. Market research is one of the most critical parts of finding what to charge for your monthly rent. Avoiding market research is a common—and expensive—landlord mistake.
Landlords need to understand how your property compares to other similar properties in the area. You also need to understand your out-of-pocket costs to manage your property.
Do your research to answer these kinds of questions:
- How much is your property worth?
- How many rental homes are in the Concord area? How many of these home are vacant versus occupied?
- What's the length of time a house stays vacant on the rental market?
- What are the prices of properties like yours in the area? Compare to similar square footage, amenities, and the number of rooms.
- How many area rentals are Multi-Family Homes (MFH) versus Single-Family Homes (SFH)?
- What is the average rent amount per square foot in the area?
- What is a typical amount for the rental application fee?
When you learn how your property compares to other nearby property, you'll have a good start toward setting the right rental price.
Resist What You Want
Setting the ideal rental price isn't about what a landlord wants to charge each month. The ideal rental rate is the price that works best for your market and your property.
If you have a higher price in mind for your property, but the data doesn't support it, resist going with what you want. Trust the numbers.
Your rental property is a long-term investment. You need to maximize your rental property revenue to make sure it's a profitable investment for the long-haul.
- When the price for your rental property is too high compared to other properties in the area, you won't find tenants who want to pay that much to live in your home. You lose money every month that your property stays empty.
- When you set the price is too low to find "any" tenant hastily, you'll attract poor-quality tenants. When the rent is too low, you also won't make enough money to cover your expenses on the property or generate a profit.
Take the time to do the research before setting your rental price. Don't pay the price for lack of rental income because your rent is too high, or too low.
When to Adjust
Do you already have a property that's losing money? It's not too late to adjust the rental price!
If you're struggling to find the right tenants for your property, or you're experiencing any of these issues, take a look at your rental price.
- If you've shown the property a few times, but the potential tenants never come back to fill out an application, your rent might be too high.
- If it's been three (or more) days since you listed your property, but you haven't had any responses from potential tenants, the price might be too high.
- If you suddenly get a flood of inquiries within the first few hours of listing your property, your rent price might be too low.
Low prices on quality properties can trigger responses from renters trying to get in a nice property before you realize it's under-priced.
Don't panic if you're dealing with any of these issues. Take a breather, do your market research, and adjust the price to something more in-line with your market.
Research is Good For Business
It might feel like a substantial task to gather this much research to inform your rental price decision.
It can be a lot of work. However, it's a critical task. Without thorough research, you are picking a rental price out of thin air with hopes that it makes a profit for you.
Did you know that you don't have to gather your own research? A property management company has everything you need to research your property and land on the right rental price.
All County Property Management knows the Concord rental market. We have the research you need to understand how your property compares to others in the market.
Let us help guide you to the most profitable price for your rental property. Start with our FREE Quote!