Every landlord needs to know how to price their rental property. Listing the rent too high or too low can result in money lost, but finding the right balance between the two is tricky.
You don’t want to charge too much and risk the unit staying vacant, but you also don’t want to cheat yourself by not charging enough. Fortunately, when you stay up-to-date on rental prices, you’ll know what to charge appropriately every time.
No matter how big or small your business, it’s always a good idea to stay up-to-date on rental prices. Knowing the rental market ensures you’re earning maximum profit with the least amount of stress.
As you determine the right rental price, you might find that you need to raise the rent. Doing so can be stressful if you’re worried about your tenants fighting the price increase. The good news is raising rent is easier than you think as long as you give your tenants enough notice and gradually increase the rent at each lease renewal period.
If your research suggests that you should possibly decrease rent, only do so if you’re having trouble renting out the unit or if your tenants don’t usually renew their lease. Here are three ways to stay up-to-date on rental prices.
1. Get a Cozy Rent Estimate report
Cozy’s Rent Estimate reports give you a detailed estimate on how much to charge for rent, which takes away the guesswork. Instead of spending a few hours doing the research yourself, these reports give you a recommended rent price so you can stay competitive with other properties.
Rent Estimate reports calculate the recommended rent price by comparing actual rents charged in your rental’s area, and you get that info in the report. The Rent reports also include other key info about your rental, including localized vacancy rates, county rent trends, and other investor metrics. These data points will help you ake informed decisions about pricing and marketing your rental.
2. Join your local landlord’s association
Your local landlord’s association is an organization within your town or city made up of other landlords, property owners, and investors. Joining can be beneficial to your business in a number of ways. You can network with landlords, stay updated on new eviction procedures, and get information on properties for sale. You’ll also get access to resources like tenant screening services, rent collection services, and credit reporting services.
Being a member of your local landlord’s association is a great way to stay up-to-date on rental prices. You can reach out to other landlords within the association who have properties in your neighborhood and get advice on how much to charge. Asking around will give you most of the information you need for rental prices, and you’ll build relationships in the process.
If you’re not sure how to find your local landlord’s association, Landlordology has a search tool that finds one for you. In case there isn’t a landlord’s association in your area, there are other resources out there. Another alternative is joining online landlord forums to answer your questions and get information about rental prices.
3. Conduct research
It’s simple to do a little research around your neighborhood without leaving your desk. You can start by calling other apartment building managers or landlords of other rental homes nearby and asking what their rates are. Also, sites like Craigslist and Apartments.com can give you a good idea of what rent is going for with properties similar to yours. Pay attention to what prices are going for in your neighborhood compared to what landlords are asking (and hoping!) to get.
But keep in mind, just because landlords are asking for a certain price doesn’t mean tenants are willing to pay that much. Sometimes landlords list a higher rent as a test to see if people are interested. So take caution when you are researching, and make sure to find at least three other properties that are similar to yours to compare to. Looking at three other properties instead of just one gives you an average of what your property is renting for.
With these tips, staying updated on rental prices doesn’t have to be difficult. Some people don’t do any research at all and end up losing money, even though there are simple resources out there. Take the right steps, and you can avoid missing out on the best possible rent price.