2 FACTORS TO CONSIDER WHEN PRICING YOUR RENTALS

As a landlord, one of the things that should be carefully taken care of is pricing your rental. Pricing rental should be made accordingly. To be able to do that, you should consider two things: the competitor’s market survey and the updates or upgrades.

First: COMPETITOR’S RENTALS PRICE  MARKET SURVEY

One way to price your rental is to base your price in accordance with your competitor’s price. To do that, you have to do a market survey of your competitors within a mile of you. This is called market rent. Of course, the rent should be made according to what the local market can absorb.

4 things to bear in mind when evaluating competitors

The following are the things you should gather when looking at your competitor’s information:

• Who are they?

• Their location

• How do they sell?

• Their pricing model

Moreover, you should also take a look at what type of property your rentals belong to. Is it single-family or multifamily? This is also considered when pricing the rentals because prices vary depending on the rental type.

Another factor under this is to look at fair market value estimations, which are updated every year by the United States Department of Housing and Urban Development (HUD).

Second: THE UPDATES THAT YOUR RENTAL HAD 

What can your property offer? When doing a competitor’s comparisons, this is a crucial factor. For instance, if there’s a property that is the same as yours, but some of your feature or amenity is more advance, you can offer a higher price.

The following are some of the updates or amenities you probably want to have so you can get ahead of your competitors.

• Parking. A considerable advantage for your rental is having a garage or assigned street parking.

• Security. Safety comes first for most tenants. So it is checked for them if security is ensured within your rentals.

• Walkability. Is it near the school, market, malls, restaurants, park, or public transportation?

• Outdoor areas. Does it have patios, balconies, or other recreation areas that probably make your prospective tenants enjoy?

Final Thoughts on Your Rentals Journey

Pricing rentals should be made discreetly for successful rental management. A good rental price avoids long-time vacancies, bad tenants, and unnecessary property problems.