Before any potential tenants schedule a property showing, they weigh in on the rental fee first. This means that you should give proper attention to pricing your Roseville rental property. No matter how superb the features of your rental home are, you still need to advertise strategically.
Pricing is a great factor when it comes to advertising a rental property. If you set an inaccurate rental rate, it can still lead to a vacancy.
To attract several prospective renters to your Roseville rental home, your rental price should reflect the great qualities of the property. When renting out your home, if you succeed in assigning the right rent amount, you’ll be able to optimize your rental income.
The following are some things to consider when setting the price of your Roseville rental home:
Make the Comparison Strategy Work for You
Always be on the lookout for the rental prices assigned by your competitors. Ensure you’re comparing your rental space with a similar property type. Consider the neighborhoods where your Roseville rental property is in close proximity.
Distant towns may affect rental pricing. Other locations can sport a higher demand since it has a premium appeal and can market upscale rental homes.
Another area to consider is the square footage of the property. Make sure that you’re comparing your Roseville rental home with a property that has the same number of bedrooms and bathrooms for better accuracy.
In addition, rental rates also differ in terms of the property type. You can’t use the same yardstick for single-family and multi-family homes. Single-family homes offer more privacy so the rental fee is generally higher than a multi-family home.
Last but not least, evaluate when your rental property was built. If it’s new, then pricing it higher is reasonable since you provide modern amenities and your property is free from normal wear and tear.
Best Sources for Comparison
For a reliable comparison of rental price data, you can use these sources:
1. Online Ads
Check the popular property listing sites to conduct a price rental search. Pick a few rental properties similar to your Roseville rental home and track the price adjustments over the weeks. This way, you can make note of which ones set the right rental fee since they’re bound to be off the market faster.
2. In Person
You can opt to do an offline search by booking a property showing and seeing a rental home similar to your Roseville property. Ask the landlord relevant questions that would reveal the current demand for the rental unit you’re inspecting.
3. Property Management Companies
Since a lot of property management companies offer free rent price analysis, you can consider reaching out to them. A trusted property manager, such as JTS Property Management, can provide an excellent assessment of the current demand for your Roseville rental home.
By being active in the real estate industry, a property management company is able to provide an accurate pricing evaluation. They’ll often consider your rental unit’s location, amenities, and the rentals you’re competing against in your neighborhood.
Price Setting Based on Amenities
It’s not ideal to assign a flat rental price for your different rental units. Always weigh in on the demand from potential residents.
Different properties carry their own special features that you can play with when setting the right rental rate.
Other factors you can consider for rent setting are:
- Outdoor Views: With an attractive view, you can set a better rate for your Roseville rental home. Scenic views are impressive and renters opt to pay higher for them.
- Modern Features: If you have several new appliances and renovated flooring, you can assign a higher rental fee. Plenty of tenants are willing to pay extra for better facilities around the rental home.
- Property Size: With a larger sized rental space, you can charge a higher price.
- Additional Amenities: If you’re providing several amenities, you can consider setting a higher rental fee. A lot of occupants prefer having a parking spot, more storage, and better-quality facilities.
- Floor Levels: Raising the rent for rental rooms on higher floors is understandable since most residents value having more privacy and enjoying better views.
Profit and Rent Setting
With a fair rental price, you can benefit from a profitable Roseville rental home even with the standard property expenses to attend to, such as paying for a mortgage and spending on property maintenance.
Ensure you earn a profit after you pay off all your rental property operating costs. If not, you might have overinvested in your Roseville rental home.
Bear in mind that when you’re paying for a mortgage, the profit from your real estate can be realized after a certain period. If this isn’t the case, consider tweaking your rental rate.
Reviewing Potential Tenant Interest
You can tell if there’s a lot of interest in your Roseville rental property. Are there plenty of property showing requests? If there are only a few then you can review your rental fee and make adjustments.
If the rate is unreasonable, then prospective renters would opt for other rental properties. This is just one of the factors to evaluate as you should also consider if your rental unit is effectively advertised.
Check if your rental pricing matches the demand for your location and property features. If your rental unit is located far away from the central area and it’s not upgraded, then you might be assigning the wrong rental rate.
Market Demand Controls Rent Prices
As a landlord, you always need to be aware of the economy and the factors that drive the rental pricing of your rental home. It’s advisable to take into account the peak seasons when you’re operating a vacation rental unit.
It’s also recommended to stay up to date with the changing infrastructure in your neighborhood. Are there new local businesses, schools, or attractions being built? This can possibly elevate rental property demand.
Make sure to review the rental rate of your Roseville rental home. Adjust for stronger property demand and reduce prices when the economy is in a downturn. You can also offer incentives to attract long-term tenants.
As a landlord, it’s important to know how to properly price your rental property. If you’re looking for a reliable property manager to help with rental price setting, contact JTS Property Management today! We’re a full-service property management company fully equipped to deal with all your property’s needs!