For any owner in a rental property management situation, rent is among the largest individual factors in the investment. How much you can reasonably charge tenants compared with what you’re paying will often define your profit margin, barring unforeseen issues.
At Real Property Management in Salt Lake City, we’re here to assist you with all these kinds of details within the investment property management world. Here are three of the key factors that may go into determining exactly what you can charge for rent.
Term of the Lease
The length of the lease term is one of the first factors to consider when thinking about rent. For the most part, the longer the term, the less the rent is – a tenant is locking you into a non-vacancy situation for longer, so they get the benefit of a smaller monthly payment while you get the benefit of that security. Your costs are lower to prepare for the next resident.
This can mean different things for different owners. If you’re in an area or situation where you’re completely confident you can fill vacancies quickly, even on a short turnaround, you could be best shooting for shorter rent periods, charging more and seeing larger profits. If you care more about long-term relationships and security, however, sacrificing a little bit of short term rent is usually the way to go.
Amenities
Both from a property and community standpoint, amenities are a big factor in rent as well. Items like cleanliness, landscaping, floor plans and similar details should all be taken into account, as should any additional amenities over and above the usual requirements for properties like yours. Check into things like community activities and facilities, as these can swing rental rates in the area.
Move-In Date
In most situations, tenants who are able to move in right away are afforded the best rent deals. This is basic supply and demand – the longer tenants wait, the lower supply of vacancies becomes. Every day you hold a property open for a tenant without them moving in is lost money, and they will have to compensate that in rent. There’s absolutely nothing wrong with charging a larger rent figure for tenants who are delayed in moving in.
Want to learn more about basic rent factors, or interested in any of our other property management services? Speak to the experts at Real Property Management in Salt Lake City today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
