Is your rental an investment property? Are you leaving money on the table? Do you know the market value and where you should be pricing yourself? It’s time to maximize your profit, and we’re here to help.
Finding the sweet spot is important. We’ve learned to push current market rent amounts, because it allows you to find the price that fills your home quickly but isn’t undervalued.
By watching the market, you’re able to see how long typical homes in your price range sit before being filled. If it takes too long, you’re losing money. Yet, go too low in price and you leave money on the table.
Where in the past you might have found your renter in under a week, there can be periods where it may take longer, up to two weeks. Trends change, so be sure to see what’s going on in your neighborhood.
Let’s narrow it down to a few specifics. This will give you an idea of what we’re talking about.
Resolute Property Management was working with a new construction home in Belleview, Florida. The development is called Cobblestone. They offer a nice area of homes, but it sits in a little more rural area than your standard suburbia home. Renting it out, we were able to move it at $1,750. In one day, that home moved. Yep. One day. In Ocala, we had a home set at $1,250 that moved quickly. In fact, we didn’t even have to put it on the market, because we had an applicant—so technically zero days.
Now, each situation will be unique, but knowing the range you need to be in for the area your home is in is a good start. What’s nice is that our rental properties are moving, because we’re aware of the market and we watch it continually.
A problem that many rental property owners have when setting their own rates is the random aspect. They guess, rather than analyze the current market trends. They value the home at what they perceive they should get for it—but, this isn’t about emotions.
Maybe you go too low with your rental pricing, because you’ve had a tenant in place for a while. Most rent prices tend to increase between 5-15% every year. So, if you rented a home at $1,000 two years ago, and it’s just now opening, consider pushing the rent to account for the change. You’d then price at around $1,200.
Take a good look at the market before setting your rental price. What are other rentals in the area going for? If you need help or want to discuss putting your property on the market, feel free to reach out to us for a free rental analysis.
Because we rent so many properties, we’re able to pull comps to help you understand where your market currently stands. We use our history and experience in the many neighborhoods we work in to help you see what the current market is doing and has done. In fact, we recently listed two properties, and had over five applications come in for them in under three days. When you’re at the right price range for the market, there’s no reason your investment home should be sitting empty.
Let us help you get an estimate on your rental property, so you know if you’re in the right ballpark. Contact us today at Resolute Property Management to get started.