Accurate pricing is critical when you’re renting out a Pleasant Hill property. If you price your home too low, you’re losing money on a regular basis. You’ll also have a hard time bringing your home up to market rates, since you can only raise the rent so much from lease period to lease period, especially with the same tenant in place.
Overpricing your home can be just as problematic. If you attach a rental value that’s higher than it should be, you’ll face a longer vacancy period. The money you lose on an unoccupied home can never be recouped.
The right rental price requires a bit of research into the market. Here’s how to accurately price your Pleasant Hill rental property.
Look at Similar Properties in Pleasant Hill
Before you price your rental property, get an idea of what other homes are renting for, especially those homes similar to yours and closest to yours. The rental market changes pretty quickly, so you need the most reliable prices possible. Don’t settle for what homes rented for a year ago. You need to know what those on the market currently are going for.
The rental market itself is the biggest factor in how much you can earn on your home. The amount of competition will also factor into what you can charge. If there are a lot of properties just like yours available to renters, you’ll have to bring your price down a bit in order to attract their attention. If the demand is high and the supply is low however, you’ll be able to ask a bit more.
Consider Property Location
Location is also a factor in what you can charge. Is your home in a desirable neighborhood, close to schools and shops and restaurants? Is parking a problem? Well-located rental properties will always rent for more than those homes that are more remote or in unfortunate positions.
Property Condition and Rental Values
While there isn’t much you can do as an owner about the strength of the rental market or the geographic position of your property, you have complete control over the home’s condition. Before you price your property, make sure it’s in the best shape it can be in. Good tenants are willing to pay more for a home that’s clean, well-maintained, and modern.
Before you establish a rental value, consider making some minor upgrades and updates. You don’t have to do a complete renovation, but fresh paint, clean landscaping, energy-efficient lighting, and smart technology can increase a rental price with minimal effort. If your appliances are aging, replace them. If your carpets are looking old and worn, consider hard surface flooring. There are several things you can do to drive up the rental price.
We always recommend you get some help from a Pleasant Hill property management company when you’re pricing your property. It’s a great way to leverage the pricing data and expertise that management companies can provide, and you’ll know you’re on the right track when you begin to market your rental home.
We can help. Please contact us at Stokley Properties when you’re ready to price your property.