Setting the Right Rent for Your Rental Property
Competitive pricing plays an important role in finding tenants for your vacant property. This doesn’t always mean setting low prices for your property, but rather about what your property has to offer against the price you’re setting. Showcase your property’s amenities, location, and other upgrades to attract qualified tenants. You can also find out what other properties in the location charge and be within that range. Charging too high or low can get your property easily dismissed by tenants. Competitive pricing also puts you in a position where you’re likely to have low vacancies. As we know, low vacancies equals more losses since you still have to incur other costs.
Factors to consider for competitive pricing
You need to consider factors such as the type of your property, location, amenities, and market trends. These can affect how you get tenants for your property.
- Amenities
The type of amenities you have in your property can affect your clientele and the rent you charge. For example, properties with amenities such as Wi-Fi, Gym, Swimming pool, DSTV, and Parking spaces are likely to have a large clientele and higher rent pricing depending on the location. Consider upgrading your amenities if you’re a landlord in high-end neighborhoods or sub-urban areas and this will increase your revenue.
- Location
The location in which your property is situated can also determine how much you charge. Properties in developing areas where more people are looking to settle have a high chance of getting tenants and therefore more rent unlike in rural areas or under-developed locations. If you’re yet to set up your property, consider strategic locations with high-growth potential.
- Current market trends
Monitoring market trends will keep you at par on how much rent you charge for your property. An increase in property demand would mean that rent will go up and so will a stable economy. Low demand for property and an unstable economy would also mean that rent prices will go lower.
- Property type
Your property type will also determine how much you charge for rent. Rent in apartments mostly costs relatively less, as compared to single-unit family units or large homes.
Screening potential tenants to find responsible and reliable occupants.
Screening tenants before they move in is very important for a landlord or managing agency.
- Screening tenants allows you to check their income and rental history and avoid non-paying clients for an overall smooth running of the property.
- It also helps check criminal history background to avoid tenants who can potentially harm other tenants or the property at large.
- Screening tenants eases the work of the landlord because they get to decide what kind of tenants they have in the property. It also creates a sense of security for them.
- Screening also helps to build a good relationship with the tenants because the landlord can trust that they are responsible and won't cause any disturbance for them.
Common screening practices
Some of the common screening properties include:
- Rental history
Checking your tenants’ rental history will help you identify what are their tendencies in their previous rentals. Do they pay rent on time? Do they abide by house policies?
- Employment and Income status
Learning the employment status of your potential tenants will help you identify whether they can afford to pay rent on time or how you can work around their rent payments and avoid clashing all the time.
