Setting rent price for your property depends on the market and the property itself. There are two factors that determine the desirability of your property, and those are going to be price and condition. To avoid long vacancies and attract a desirable tenant, you need to know how to price a rental property correctly.
How to Price a Rental: Avoid Bad Tenants
When you’re deciding how to price your rental property, you want to make sure you don’t overprice it. An overpriced property attracts lesser qualified tenants. These will be the applicants who may not have good credit or verifiable income. They may be roommate situations where not everyone qualified. So, be aware of this and make sure you’re not appealing to less than desirable tenants.
How to Determine Rent Price: Quality Properties Rent for More
If you want quality tenants, provide a quality property. Consider doing some upgrades or make some improvements to the condition of the property so you can charge a little more. The tenants who are willing to pay a higher price for a property that they can get down the street for a couple hundred dollars cheaper are not your best tenants. There is likely more to their story. Also, a tenant who offers to pay several months in advance or tries to make cash payments without showing any documented income will always be willing to rent an overpriced property. The tenants you want, however, will be looking for a home that is in good condition and fairly priced.
How to Price My Rental Property: Avoid Vacancies
Another problem with overpricing a property is that you will have potentially longer vacancies. No one will be willing to pay a price that’s too high for the market. If you wait even one month to get a higher rent, you are losing money. Offering the property at a fair price would have minimized your vacancy and increased your rental income.
Property Management Chula Vista: Compare Properties
Take a look at other properties and see what they are renting for. Compare them to your property and price it competitively to fill the vacancy quickly and get a quality tenant versus someone who is desperate and willing to pay whatever.
If you need help deciding how to price your rental property, or you have any questions about Chula Vista property management, please contact us at Elite Property Management. We proudly serve San Diego, Chula Vista, National City, Lemon Grove, La Mesa, and surrounding areas.