Tenants want a rent price that is affordable, fairly reflects the value they receive, and makes sense given the neighborhood’s market. This is why it’s important to do market research and understand the value of your property before listing your property for rent.
To get started, consider the various factors that affect price:
- Your rental unit's value, in the eyes of the renter
- The current rental market
You want tenants to be sold on value; the things that your property has that make it the best option on the market.
But what exactly convinces tenants that your property is valuable?
Tenants are willing to pay higher rent when the higher price fairly reflects value you offer. Based on our experience, your unit has high value if you provide:
- In-unit washer / dryer
- Off-street parking
- Updated appliances
- Hardwood floors
- Central air conditioning
- Pet-friendly lease
And now for the hard part. It’s important that you study your market before setting rent price.
Your market is composed of similarly sized and priced properties in your neighborhood. Let’s say your unit has a washer/dryer and offers off-street parking. If you find a property nearby that offers parking, but no washer/dryer, examine their rent price, and make yours. The logic is simple: the more value you provide, the higher you can price your rental.
Prices can vary dramatically based on location, so limit your research to properties in your specific neighborhood.
If you’re wondering how fair your price is compared to other properties that are currently available for rent near you, contact us and let an IKOS Client Advisor provide assistance.
Our team has leased thousands of rental properties in Pittsburgh, Philadelphia, Washington DC, Baltimore, Cleveland, Chicago and Milwaukee. Over the course of leasing these properties, we’ve collected valuable data that helps our clients list their rental properties at prices that will maximize return and minimize time on the market.
And don’t forget about seasonality…
Rent price is subject to the laws of supply and demand. High tenant demand warrants high rent prices. Peak rental season is May through August. During that time, demand is high and rent prices rise. If you do have to fill a vacancy during the off-season, here are a few tips to help.
Need help marketing your property, managing your tenant leads, and conducting showings? Fill out the form below or email us at firstname.lastname@example.org to learn more about how we fill rental vacancies fast.