How to Price a Rental Based on the State of the Economy
Aug 25, 2020 12:32:42 PM
For many people who rent a house or apartment, that monthly payment is the largest bill they pay. How much they're willing to pay for rent may depend in part on the state of the economy and how much it affects them. If they don't anticipate a raise anytime soon, the rent budget may experience a freeze too.
Check the Market
When pricing a rental, research how much other comparable units are going for, and set your rental price at market level or just slightly below it. If you set the rent too low, you short yourself on potential income. If the rent is too high, you may have difficulty finding interested renters who will check out your rental and see what you have to offer. You can't make any money on an empty unit.
To be competitive with other units and get good tenants relatively quickly, make your rental look good when compared with similar units:
Mention attributes like attractive new appliances, flooring and paint. Highlight quality elements such as granite countertops and hardwood floors.
Show proximity to areas of interest such as parks, shopping, museums and entertainment.
Make it clear if the rental has a security entrance and/or security cameras.
Storage space is important for apartment dwellers. If you have spacious closets, a pantry area, or a separate storage unit, that can be a selling point.
If your rental offers off-street parking, that can be a big selling point, especially in neighborhoods where parking is restricted to certain days. If tenants don't have to park in the street, it saves them from having to go outside to move their cars.
Is the rental near a bus stop or train station? That can be a priority for many people who take public transportation to work.
If pets are allowed, make this clear. Allowing a small pet could give you a leg up against the competition, since many renters struggle to find housing that will allow their pets.
In a multiple-unit facility, don't limit yourself by pricing your units all the same, or based solely on number of bedrooms. Price the rentals according to their value to the average renter. Not only will this get you more money for some units, the price difference will draw attention to the extra value. Units can command higher rents when they are on higher floors or have additional square footage, extra storage, better views or more amenities. And those getting the cheapest units can feel happy that they got a good deal.
Regardless of what you charge for rent, don't forget to do tenant screening to make sure you have dependable people renting from you. A rental history check will reveal potential problem renters and weed them out before you start the rental process. Tenant screening services can reduce the risk of going through an eviction process down the road and increase the likelihood that you'll end up with positive relationships with renters.