How To Determine Rent For A Property
Finding the right price to rent a property can be a difficult and time consuming task. You need the right tools, resources, and expertise to determine it effectively. Setting the wrong price for a rental property can have both short term and long term negative effects.
Here are some helpful tips our over 25 years of property management experience has taught us on determining the right price for a rental property.
The Market Does The Work
One thing to remember is that you actually don’t decide the price at all, the market does. The hard fork has already been done. The key is finding resources that show you trends and statistics on what the rental market is doing here in the Salt Lake area right now.
The professional staff here at Real Property Management has been doing this for years. We have the tools experience and resources needed to determine what the market is doing now.
Avoid Personal Bias
This is a common mistake among first time landlords. Many home owner take great care and pride in the condition for their home and in turn feel that their home should therefore rent for a much higher amount. Remember, it is the market that always sets the price. However, the condition and care for the property are very important. Well maintained rental properties may rent for a slightly higher amount but even more important the property will rent faster, and attract higher quality tenants who take care of the property, pay rent on time and stay longer.
Here is an example of how having a nice, well maintained property, listed at the right price will make you more money.
Take these two properties as an example. Both the same size, with the same number of bedrooms, listed at the same market price in the same neighborhood. Where it may only take our average of 15-30 days to rent the well maintained property, it could take as many as 60-90 days to rent the same property in poor condition.
|Property A||Property B|
|Days on market||30||90|
|Income after 1 year||$15,400||$12,600|
Even if “Property A” was able to rent for a higher amount, if it takes any longer to rent you may be loosing money.
Hiring a trained, experienced property manager will help you take the guess work out of this process. Read more about how else to save money on renting your property.
Amenities and Higher Rent
Much like the the properties condition, as previously explained, the amenities of a property factor in very little to how much a property will rent for, but play an important role in determining how quickly a property will rent.
We Are Here To Help
As always the friendly, professional staff at Real Property Management Salt Lake City is here to assist you with all of your property needs.
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