How to Set a Rental Price – Santa Cruz Property Management Advice

Today I want to talk to you about how you should set a price for your rental property. It’s an easy thing for us at Real Estate Eight Three One to do because we do it every day, so we have a good pulse on the rental market. When we are advising owners what to charge for rent, we start by comparing the property to others that are similar and in the same area with identical amenities. We take a look at what those properties have rented for in the past, which helps us to recommend a good price point.

One of the most important things to remember when setting a price for your rental is not to price it too high. When you set a price that’s too high, it will create some additional downtime for your Rental Price  Santa Cruz Property Managementproperty, and that vacancy will create lost revenue that you will never really be able to recover. So, you want to be realistic about how much rent you can reasonably charge when setting your price. Take a look at what other properties in your neighborhood are renting for, and that will give you a pretty good indication of what you are going to get for your home.

Our goal as professional property managers is to attract and retain the best possible tenants. Setting a price that’s too high will also come with an additional risk; getting someone who is a little more desperate to rent your house. If your home is priced too high for well qualified tenants, you will likely get applicants who have been turned down in other places and they just need to find housing. They will be willing to pay more because they know they cannot find anywhere else to take them, and they know you will not be able to rent your home to a better tenant because of the price attached to it. You’ll be better off with a more reasonable price and a highly qualified tenant in your home.

Hopefully, today’s blog has provided you with some general direction on how to price your home on the rental market. If you have any questions at all about how much rent to charge for your property, please do not hesitate to contact us at Real Estate Eight Three One, and we would be more than happy to help you.

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6 Responses to “How to Set a Rental Price – Santa Cruz Property Management Advice”

  1. Jerry Jennings October 10, 2013 3:44 pm
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    We agree that setting a rental price too high may prove costly in the end. One way to command a higher price is to present the property well; every detail from paint to landscaping attended to. If you’re interested in additional information, here is a link to our blog:

    http://blog.wgprop.com/charge-rent-nashville/

    Jerry

  2. Dave Poletti August 29, 2014 9:37 am
    #

    I’m glad you mentioned the point of a higher price on your home will not neccessarily attract a higher quality tenant. Making the distinction between the two is great and it is a matter of quantity equals quality because it will give you the chance to screen your tenants and houes the tenant who will give you the least headaches in the long term. Check out my blog on this same topic and let me know what you think http://blog.davepoletti.com/2014/04/22/property-management-tips-what-to-charge-for-rent-seattle/

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  1. Find Me a Tenant! Santa Cruz Property Management Advice | Santa Cruz Property Management Blog by RE 831 - June 12, 2013

    […] we discuss with a property owner before we set the final price and go to market with it. Again, setting the price too high can create a longer vacancy, so we like to discuss price range extensivel… Lost rent is revenue you will never get back, and we are very aware of that. We take your bottom […]

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  3. Find Me a Tenant! Santa Cruz Property Management Advice | Real Estate Eight Three One - September 27, 2013

    […] we discuss with a property owner before we set the final price and go to market with it. Again, setting the price too high can create a longer vacancy, so we like to discuss price range extensivel… Lost rent is revenue you will never get back, and we are very aware of that. We take your bottom […]

  4. Setting a Pet Policy in Santa Cruz Property Management How To | Real Estate Eight Three One - September 27, 2013

    […] a lease, we also have a pet agreement which needs to be signed. This agreement stipulates that the pet owner will abide by all the relevant city and county laws and regulations regarding domestic… They are required to keep their animals registered and current on all vaccinations with the pet’s […]