Given the large amount of vacant inventory on the rental market, it is important to establish a fair rental value based on the demand in your area. Here are a few suggestions:
1. Property Managers. A knowledgeable property manager can accurately predict the rental range in an area. Some can provide additional resources that can minimize the "guess work". One example is a rental housing survey, such as the one available on our website at www.investorschoicepm.com. Landlords should be wary of any property manager than lets an owner pick his/her starting price with little or no input.
2. Craigslist can be a great tool for sizing up the competition in a given area, but bear in mind that there are plenty of Landlord's out there willing to overprice their property, so keep an open mind when reviewing the data.
3. Be flexible. While there may be little harm in "testing the water" with a higher price than what the market data supports, Landlords should be willing to adjust their rental price weekly depending on the response activity. With a fair starting price and a flexible approach, finding a tenant within 30 days should be no problem.
4. Move-In Specials. Whether it is a "split deposit upon approved credit", or "2 weeks free with a 12 month lease", Landlords experiencing a lack of interest should consider offering a move-in special. I have seen tenants rent a slightly overpriced rental in an area with lower priced competitors, simply because the initial outlay of money to take possession was reduced by the special offer.
5. Lease Terms. Every bit as important as pricing is the type of lease desired. Rather than insisting on a 12 month requirement, we recommend listing "a preference". This keeps the option open to negotiate a shorter or longer lease. If given the choice, we usually choose to construct our leases so that they always come due in the late Spring or early Summer. That way, whether it is our client's intention to re-rent or sell, the property is available at the most desirable time of year for either plan.
If you have a question about any aspect of Property Management, send us a comment or email at tmartin@investorschoicepm.com, or click on the "contact us" link on our website. Investors Choice Property Management (ICPM) proudly manages 100 properties with the care and dilligence our clients have come to expect, in a manner that has them referring their friends and family members to us for exceptional service.
"Experience Property Management the Way it Should Be."
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