Deciding how much to rent your property for can be like throwing darts at a dart board until one sticks! It’s hard to figure out what the right price should be. Setting the rent price too high could cause a longer vacancy period, but setting the price too low can make you lose out on potential profit. Getting it wrong either way costs you thousands in the long run. Here are some tricks and tips to help you figure out the price that is just right.
Research Comparables in the Area
The number one way to figure out how much to charge for rent is to see what the rent is for other properties in the area. There are several different ways you can search but be sure to look for properties that have the same number of beds, baths, and square footage of your property. There likely won’t be an exact replica to compare to but if you look for properties that are similar to yours, it will help you know where to start on rent price.
Other factors that may impact the price of your listing includes location, condition of the unit, and amenities. If you are comparing your listing that has a swimming pool, garage parking, in-unit laundry, and was recently upgraded to a property that doesn’t have laundry, a yard, or a garage then the rental price will be off. When looking at the rental properties in the area, be sure to account for such differences. You will want to make sure to find a unit as similar to yours as possible.
Adjust for the Season and Demand
Another thing to consider when pricing your property is the season and demand. Summer months tend to have a higher demand and making it easier to get higher rent during the summer months. Whereas during the winter months, there are generally less people looking to move. This can be the case especially in colder states, not very many people want to move while it’s snowing! The winter months may cause a decrease in the number of people looking for a place to rent, thus decreasing the price of the rental.
It is also important to know your area. For example, if your property is close to a college, you may want to advertise it before the beginning of the semester. Be sure to consider the area so you can properly advertise the unit and get the best rent out of your property as possible. You may also want to consider changing your usual lease terms when you originally send out a lease to align future renewal dates to the time of year your property will rent the best in.
It is important to correctly price your property to ensure less vacancy periods and make the most profit out of your unit as possible. Here at Hero Property Management we understand the importance of getting the right rental price and making quick adjustments if necessary. Professional property management companies can help you make the best decisions for your property. Reach out for a consultation today 801-845-4390.