How Much Will my Salem Property Rent For? Professional Property Management Advice
Mendell Gosnell - Wednesday, July 22, 2015
We get a lot of questions about rental pricing, and today we’ll address how you should price your property and what kind of rent you can expect.
Comparative Rental Analysis
One of the things that we always tell our clients is that it’s important to do a comprehensive rental market analysis in order to get the right price for your property. Your goal is to set the price that allows you to rent the property for the most money in the least amount of time. Any prolonged vacancy period will negate anything you gain by trying to capture a higher rental amount.
There are three important reasons to analyze the market when you’re pricing your property:
The market changes often.
You really don’t set the rent, the market does, so it’s best to analyze it, listen to it and then respond to it with a competitive price.
It helps you to maximize the return you get on your investment.
As professional property managers, we can be invaluable in this process and we often earn our commission in this one area alone. When you have the right price, you rent quickly to good tenants and everything else falls into place. Here are three tips that will help you determine whether you’re at the right price point:
Objectively analyze what your rental has to offer in terms of location, amenities and overall appeal.
Look for several comparable properties that will help you narrow your price range.
Once you have started advertising, analyze your call volume and the number of days on the market. Adjust your price if you can’t rent it in a timely fashion.
Determining how to price your rental property is one part art and one part science. If you’d like help establishing the right price for your property, please contact us at Centurion Real Estate Management. Happy investing!