The problem:
What is the right rent for your unit? What if you’ve been out of the market for quite some time and now you need to get a quick idea of the right rental rate? One that is not so low that it rents out in a minute and you are left with a below market income for years to come. And one who is not so tall that he wastes precious time without income for months before learning his lesson.
If you’re like most of us, you need to hit that number to break even as quickly as possible. Well…here are some thoughts and tips to help you get through it.
How to get to the right number
Research is the way. You have to catch up on the market. When you buy a home, there is a wealth of pricing information. You’ve got brokers and MLS and now all these web 2.0 search engines with lots of cute new toys and more depth of information than ever before. The same thing is beginning to happen with rentals as well.
The market:
Comparable:
1. Compare units similar to yours by calling the units advertised. Ask them as if you were an interested party and request square meters and amenities. Listen to his speech about transportation and other good features of the neighborhood. Write it.
2. Talk to property managers and leasing agents. Check their sites for similar properties and use them as your comparables to get a high and low rent range.
3. Check new listing websites like Property Shark or Trulia. They can offer great help.
4. Consult the local newspaper and especially the rentals in the free neighborhood newspapers.
Staging:
Stop by those buildings that sound similar to yours and see what they look like. Check:
has. Landscaping – Good grass, trimmed bushes and pretty plants. People will feel good about an uplifting property. If the competition is doing it, consider how you can improve the appearance of your property.
b. If you have a backyard, consider some landscaping with native plants. They will be low maintenance and use less water.
Mod cons:
1. Digital Services – Having cable or DSL and other digital options is high on people’s list, especially on the coasts and in exclusive areas. Many high-rent properties are even installing iPod hookups.
2. Upgrades that really increase the price: Hardwood floors, new paint, granite counter tops and stainless steel appliances, tile flooring in kitchen and bathroom.
3. Parking is a plus and is in high demand.
4. Consider installing a coin-operated washer dryer. People need to save time and it can be a small income generator.
5. Even consider reaching out to local businesses to create a business network that can offer discounted dry cleaning services for renters, for example. Local restaurants may be open for takeout and/or discounts at your building.
The highest possible returns on your investment will come from intensifying services.