Today we are talking about getting the best price for your rental home. Pricing according to what the market will bear is the most important thing and the first step in what you need to do. If you price it too high, you end up leaving it on the market with no interest and no rental income until you finally have to reduce the price to where the market is. Or, you sometimes end up renting it to the wrong person because an unqualified applicant is the only person interested in renting your property.
Alternatively, you can advertise it too low and leave money on the table that you could have used to fix up the property. So, you need to research the market before you put a price on your rental home. Check the Multiple Listing Service (MLS) if you have access to a local Realtor and find out what properties are renting for in the area. Or, search on the Internet. Look at sites like Trulia.com or Zillow.com or FloridaRentalAds.com. Avoid what Zillow calls a “Zestimate” because it’s usually way off.
You can also look at the surrounding area and get to know the competition. Find out how long it’s taking those properties to rent. This is an art form rather than a science. Don’t be too committed to the price you initially come up with. Be prepared to adjust it. If you’re not getting enough interest after a week or two, you need to fine-tune your price or perhaps there’s something wrong with your marketing, such as inadequate photos.
The objective of marketing and advertising is to get a pool of qualified, interested applicants so you can pick the best applicant and have a good rental experience. It starts with setting the right price.
If you have any questions about pricing your property, or you’d like to hear more about out professional property management services, please contact us at Sarasota Management & Leasing, and we’d be happy to help you.