There are a few determining factors that you’ll want to consider when deciding on the amount of rent to charge your tenants in Contra Costa County. Putting a price tag on your property can make or break you and dramatically impact your ROI, so it is extremely important you are aware of how to proceed when deciding what to list your property for.
Today, we’re discussing some of the factors that will have an impact on the value of your rental home. Remember that tenants have access to a lot of information; they’re going to know what your home is worth, so don’t over-price it.
Considering Location in Your Rental Price
Make sure when you set your rent for your property, it is not a number that’s completely outside of the normal price for other properties in the area. You have to be sure you are fully aware of the local housing market in your neighborhood. Compare your own rental property to similar homes in the same location. You cannot rent your property for a number that’s much higher than a property on the same street in similar condition. Tenants will not bother looking at your home when they can get the same type of property for a lot less.
Gather Comparable Reports when Pricing your Home
One key thing to do is run a comparable market analysis. This will allow you to collect data and analyze a report that dates back up to six months of rental activity. A comparable analysis will look at similar homes in the area and what they are renting for. It will take into consideration the following:
- Upgrades to the property
- The age of the property
- The size of the property, including square footage as well as bedrooms and bathrooms
- Amenities included in the property
- The rental price of the property
All these will help you to compare your property to those in the area that have similar amenities, features and upgrades. It can immediately compare your property to those that are similar. This will help you establish a rent based on what others on the market are renting for.
Asking for Professional Pricing Help
Property managers know the local rental market better than anyone. If you’re struggling to find a comfortable rental range for your property, consult an expert. We can tell you what you should charge and we can also recommend some minor upgrades and updates that you can make if you’d like to earn more.
We have found that a comparable market analysis is the best way to find the right price for your home. When you price your property correctly, you can protect your rental income, increase your long-term ROI, and attract the highest quality tenants to the home.
If you’d like to talk to us about a comparable market analysis, or you need help pricing your rental home, please don’t hesitate to contact us at A. Meadows Property Management.