Is your rental property priced right for today's market? If not, we strongly suggest that you adjust your pricing today!
As we enter the colder months, it is so important to get your rental property priced right so that you minimize vacancy as much as possible! The most expensive part of renting out your home is vacancy. Better to take $50 less per month from a qualified tenant than to sit vacant while you wait for that extra $50 per month. Vacancy can add up quickly and you want to be ahead of the pricing curve. In addition, during the colder months, you want someone in your home to monitor your pipes and your systems so that, if you have a repair issue, you jump right on it.
Here's how to price your rental property correctly
1. Look At Rental Property Supply and Demand Today!
You must price your home based on supply and demand today. Not yesterday, last month, or last year. You cannot compare pricing today to what rent you may have gotten last time that you rented out your home. Or to what your neighbor down the street got last month.
You need to look objectively at the market. What is the supply and demand for your type of rental property today? Just like the stock market, pricing fluctuates. And in order to minimize your vacancy, a good Landlord agent will keep you updated on market conditions and make recommendations to you so that you minimize your vacancy time and get a great tenant. Remember, a mediocre agent tells you what you want to hear; a great agent tells you what you need to hear. Make sure you have a great agent.
>> See Why Choose Chesapeake Property Management To Manage Your Baltimore Area Home?
2. Pay Attention To Apartments And Rental Communities Also
There have been many apartment communities built in the last few years in the Baltimore Metro Area. When the sale market and home ownership rates went down, builders and investors paid attention and started to build rental communities for the increasing rental population.
Those communities are now completed and competing with your rental property. Yes, I know that they are not exactly comparable, however, a new kitchen with stainless steel appliances, granite countertops and a community center may sway a prospective tenant away from your property.
Know your competition - all of it - even if you don't think it is directly comparable. I promise you, the good tenants are checking out all of their options and making decisions based on what is the easiest option. Tenants want "turn key" homes and low maintenance. Let's see how we can apply those needs to your home.
>> See How a Staging Consultation Can Help Your Rental Property Stand Out
>> See How To Prepare Your Home For The Rental Market
3. Be Completely Objective About Your Rental Property
Being a landlord is a business decision. The price that you "need" or "want" is irrelevant to tenants. The rental "market" is the rental market. You cannot charge more than the market will bear. And you want the best tenants, those with the best credit scores and the least risk. These tenants have options and are educated on market values. They have researched online, checked out the competition and are ready to make an offer on your home, if it is priced right and meets their needs.
So do yourself a favor and price your home correctly so that you appeal to these tenants, i.e., the ones who will pay on time and take care of your home just as if it were their own.
>> See Should I Sell Or Rent Out My Home? What Is Your Temperament?
4. Choose A Great Landlord Agent and Property Management Team
This is so important. As we enter the colder months, usually demand falls off a bit. You want a dedicated rental and property management team that knows the rental business and is dedicated to rentals, not just sales.
When given a choice, a sales agent will choose to work with buyers and sellers, not tenants and landlords. Why? Because they make more money on sales and because rental transactions are complicated and difficult. Rental transactions require a totally different skill set than sales and you need an agent and a team that really knows what they are doing. Make sure that you have an agent and a team that is passionate about the landlord/tenant experience and has the references and experience to get the job done right.
We love the rental and management business. Yes, it is complicated but we truly love helping landlords and tenants move on to the next phase of their life. It is our niche and we are here to help you every step of the way.
>> See Why Choose Chesapeake Property Management To Manage Your Baltimore Area Home?
If you have questions about how to price your rental property, don't hesitate to contact us.
