Pricing Your Rental Property
Filed under: Home Tips
When you price your rental property for quick occupancy, you don’t have to worry about your place sitting on the market empty. Each month that your rental goes unoccupied is money out of your wallet.
Getting the Price Right Is a Powerful Tool
Think about one month of missed rent. For example, if you lose $3,000 of one month’s missed rent, divide that by 12 to see how long that will affect you. For example, 3000 divided by 12 is $250. That means you could have lowered the price by $250 per month and found a renter for the same amount immediately. You would come out even in the first year.
Another month goes by, and another $250 per month is lost.
Getting a renter to move in at a lower price than you imagined can save you much more money than leaving a property empty while you wait for the right buyer at your premium price. Weigh the risks with the rewards and learn how to price your home right.
Here are some tips:
- Look for Comps: Find out what others in the neighborhood are paying for their rentals. You can come up with an estimated cost based on a 30-year mortgage, but if the other properties were purchased even one year earlier than yours, they have the flexibility to charge less.
- Highlight the Benefits: Show off the natural lighting, great views, and fresh paint when you walk people through your rental property. Talk about places you like to eat and where you go for fun.
- Find Long-Term Occupants: Rent to people who are going to stay in your place for years. This could include a family with kids who do not want to uproot them from school. Or it could be an older couple looking to live near their adult children. You will save money the fewer transitions you have between renters.
If you have questions about getting the price right for your rental property, contact me, Cale Thomas, in Temecula. Our team at Properties Direct can save you money in the long run. Send me a text or call (951) 473-0390. Email at [email protected].