5 Strategies To Find The Right Rental Price Of Your Property

No matter how much you plan, you don’t always have the time to look after the property that you are renting, and to identify the optimum rental price; as there are multiple challenges involved like; valuing your property, tenant screening, listing your house, leasing agreements, evictions and what not. 

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This takes up a lot of your energy and time, no jokes here! But thankfully, it doesn’t have to be that complicated. With the right type of research, study and analysis, you should be able to effectively decide on the right rental price. 

A professional property management service provider like us can help you with all this leg work, contact us today to learn more! Following are the five strategies which will help you to decide the right rental price for your investment property.

 

Thinking About – What’s In It For A Tenant?

Putting your feet in the tenant’s shoes answer a lot many questions the tenant would have so, thinking as a tenant helps. Successful property managers use this methodology to better understand the tenant’s advantage and weigh in the right value for your property that a tenant would be interested in paying. Since tenants will be the end-user, your customers so, look for what they value and what would be important for them as tenants. This will help you in setting up your rental price.

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Look Out For Competitors And Their Rental Price

Competitor analysis is a good idea – applies to all the business so, do the right research on how the neighborhood has been pricing and try to compare the strengths and weaknesses with your property. Going in blind would harm your chances in getting the best result on investment.

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 Ask questions like does your property has more square footage? Does it have a better sunshine direction? Does it have a good location compared to others? A number of parking spots? Schools nearby? Try and list all the strengths and weaknesses and rank yourself accordingly to reach the sweet spot that would be attractive to your tenant and profitable for you as well – the perfect rental price.

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Adjust To Demand During The Pandemic

Most tenants are taking the opportunity of COVID-19 to change their residences as the rental prices are fluctuating and adjusting due to the pandemic. Therefore, the market is still undergoing a correction and it becomes all the more important to pay attention to the demand. If you are competing with 10 other 2 bedrooms, same square footage rental units, with approximately the same rental price, there is more supply than demand and naturally, you will have to price it very competitively and likewise.

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Strengths And Weaknesses – The Price & Value Relationship

Based on the floor plan, amenities, and location, a lot of people attract or avoid homes for rent. So, list out the imperative factors like the neighborhood, square footage, layout, view, floor level to determine the attractiveness of your property and then decide for the magic number, your rental price. 

Keep in mind that most of the property owners only look at the profits and ignore the weakness or things that are lacking in their property as compared to the competition so, always ensure to consider both before you come to your rental price number.

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Pro-Tip: The 2% Rule Is Just An Estimate

Many people calculate their rental price as 2% of their property but that is just for calculation purposes and not a realistic thing to do always. Since your rental price depends on many of the other parameters as mentioned above and many others to identify the actual rental price for your property that is making you profitable and still attractive to the tenants.

Also, always revisit the steps to ensure that the assumptions you made are still valid and keep abreast of the market changes and adjustments. During these times of uncertainty many people are losing their jobs, houses, and missing out on mortgage payments so, it’s important to ensure that you are still performing well within the market.

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Happy Renting! Check out our latest listings here: We, at C B Property Management, are trusted by many for our exceptional property management expertise. Contact us today to start investing stress-free with us!