As property managers we understand how hard it can be to Determine a Rental Price for your property. So we came up with some helpful tips.
Look at the Comps
The best way to price a rental property is to look for comparable rentals in your area. Real Estate Agents call these comps. You can start this search by looking at listed rental prices on Apartmentguide.com, Craigslist and Zillow.
Here are some basic things you should look for when deciding if another rental is comparable to yours:
- Neighborhood– is the comp in the same area and on a similar street? If the comp is on a busy street but your rental is not, your rental might rent for more.
- Bedroom and bathrooms– You should look for comps with the same amount of bedrooms and bathrooms.
- Upgrades– hardwood floors and stainless steel appliances are big bonuses in a rental and will affect price.
- Amenities– Does your rental have access to a community pool, parking, or its own yard? Maybe you are in walking distance to the beach or good restaurants, these things add value.
- Shared Common Space– is your rental a condo or an apartment or a single family home? Often times rentals that share walls will rent for less than those that do not.
- Safety– rentals on the first floor of buildings often rent for less than those higher up, with the penthouse renting for the most. People perceive rentals on the first floor to be more likely broken into than those on the second.
Time of year
Rentals start to get more competitive towards the summer months here in San Diego and less competitive towards fall.
Do the math
Understanding your bottom line is an important part of pricing property. This will mean calculating your approximate maintenance cost, property management cost, taxes and mortgage to determine how much do you need to get in rent to come out ahead.
Need more help to Determine a Rental Price for your property? Give us a call.