When it comes to bringing tenants to your vacant rental property, selecting accurate rental rate is critical. Determining an appropriate rate can certainly be a challenge, though, as you need to balance your own desire for optimal profit with the need to set an attractive price to which renters will flock. Fortunately, there are some useful tips available that are certain to ease the process a bit.
Consider Unique Amenities While Deciding Rental Rate
It does not make sense to set a single price for every one bedroom unit you have or establish a uniform rate differential between one and two bedroom units. This is because it is highly unlikely that each of the units are exactly comparable, and acting as though they are can turn off potential renters. Prices should be reflective of the actual unit and its particular desirability to tenants.
Rental rates should always consider:
- Views from the unit, with garden or water views always fetching higher prices
- Renovations, decor levels and appliance updates
- Actual square footage within the units
Have you had a lot of traffic and interest in your rental property? If few renters have come to view the unit, your pricing strategy may be the problem. Rents that are thought to be either too high or even too low can keep prospective tenants away. While high prices may initially suggest prestige or luxury, if the rental property is poorly located or does not have distinctive amenities, interest will be sparse. Even low prices can be a drawback because if the rental rate does not reflect that of nearby properties, renters will assume there is a problem. Ultimately, a successful landlord needs to master the art of pricing by keeping these real estate maxims in mind.
Stay Attuned to Market Fluctuations
Establishing a rental rate is generally not something that can be done just once. Changes in the local rental market will regularly necessitate adjustments, and landlords must be willing to adapt to fluctuating conditions in order to consistently attract tenants.