Owners are always asking how much they should charge in rent, and it’s an important question when you’re listing your property on the rental market. As professional property managers, we like to take that burden off your shoulders and weigh out all the possible variables to get to the best price for your rental home.
Seasonal and Market Factors
There are many different things to consider when pricing your rental home. A big impact to the amount you can charge is the time of year that you’re listing it and whether it corresponds to the time that people prefer to move. Summer is the best time to list your rental because it’s the best weather and most families prefer to move between school years. People have vacation time to move.
We also have to take into consideration the proximity to work and schools and shopping centers. If your property is well-located you can charge more than if it’s more remote. You also have to look at how saturated the rental market is at the time. If there are a lot of rental properties on the market, we may not be able to ask for a higher rent.
Property Condition is a Factor
Well-maintained homes will rent for a good price in any market and during any time of the year. So, we also have to consider the internal fixtures of the home and its overall condition. Has the home been upgraded with hardwood floors and stainless steel appliances? If so, the rental value is higher. Is there full air conditioning and central heat in the home? The size, functions, and layout of the home are important things to consider when pricing it.
Markets Move Quickly with the Right Price
A few weeks ago, we were working with a client who told us about her home, and it sounded like it might rent for around $3,000 a month. But, we always like to visit the property before we price it. Even though the property had fewer square feet than other available homes and we were nearing the end of the strong rental season, we ended up pricing it higher after seeing the home.
The property had gorgeous hardwood floors, upgrades throughout, and new appliances. So, we scrapped the $3,000 plan and listed it for $3,400. After a few showings, the property was rented immediately. This is how the market works. Her home was the only one in the area with hardwood floors and it also included a washer and dryer. That is why seeing the home is so important before we help you price it. We want to see it through the eyes of a potential renter. All the little details such as location, upgrades, time of year, and other factors will help us price the property correctly.
If you have any additional questions, please contact us at Civitas Property Management. We would love to talk to you and help make the best decision for you and your rental property.