You have a rental property sitting, vacant, and you don’t know why.
It is immaculate, fresh, clean, all maintenance has been completed, the yard looks amazing, great photos, literally move in ready with plenty of potential applicants walking through it or inquiring about it, but you aren’t receiving applications.
What’s the problem?
The price. It’s the number one reason homes don’t lease.
Landlords price rentals too high and potential applicants are turned off. They don’t even want to see the property. So how do you know how much to rent your property for without losing? Here are the ways.
Know the Comparative Rental Rates in the Area
The market dictates how much you can ask for your property. Potential applicants not only want to pay the ‘market rate’ as they often feel taken advantage of when the landlord asks too much.
The market value plays an important role in rental rates. Do your research or work with a licensed professional property manager who can research comparative rental rates. Knowing how much comparable properties rented for in the last three-six months will be your guide when pricing your property.
Work with a Reputable, Professional Property Manager
Working with just any real estate agent won’t do the trick. Not all agents know the ins and outs of property management or are 100% familiar on rental property as this is not what they do full time.
This won’t work for you. It’s easy to tell if it’s happening. Here are telltale signs:
- Few visits to your listing page
- Few inquiries about the property
- Other homes in the area are renting, but yours isn’t
Cut the Price
If you’ve already listed your rental and feel stuck or you notice other homes are renting and yours isn’t – consider a price cut.
It may not need to be much. Even a small cut may bring in more attention. It depends on the difference between the average value of the rental properties and your asking price. The listing will show the price history and that there was a recent drop. This may bring more attention.
Don’t get Caught Pricing your Property too High
The simplest way to avoid this issue is to price your property right from the start. It’s not easy, but with the right support, you can do it.
If you make the mistake, don’t worry, it’s always fixable. Price adjustments happen all the time, and yes, even with rental property, and it’s not a bad thing. Most potential applicants will see that the property was overpriced to start. If they ask, just tell prospective applicants you made a mistake but dropped the price to make it more attractive.
In the end, you’ll rent your property faster!
