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Every landlord needs to know how to price their rental property. Listing the rent too high or too low can result in money lost, but finding the right balance between the two may seem tricky to do.
Charging to much may result in unwanted idle property, while undercharging may also mean that your cheating yourself. Here are some useful ways to stay up-to date on the rental prices in your region so you know what to charge every single time.
In any business, it is important to always a great idea to be in the loop of everything. Having some knowledge in the current rental market means that your going to be earning maximum profit with minimal amount of stress.
Determining the right rental price for a particular property can be stressful and might be a challenge, especially if you already have a tenant residing in a property. However, raising rent is a lot easier than you think it is as long as you give your tenants enough notice and the rent price change is gradual at every lease renewal period.
Here are three ways to stay up-to-date on rental prices.
1. Do some Research
A lot of research can be conducted around your local region without even leaving your desk. This can all be thanks to the advancement in technology and innovations coming out of the real estate industry. Sites like Trademe Property can give you a good idea of what rent is going for with properties similar to yours i.e. a flat or an apartment. You can trawl through the marketplace in your local region to see what others are putting their properties for. Pay attention to what prices are going for in your neighborhood compared to what landlords are asking (and hoping!) to get.
But keep in mind, just because landlords are asking for a certain price doesn’t mean tenants are willing to pay that much. So take caution when you are researching, and make sure to find at least four other similar properties with similar pricing to compare with. Looking at other properties can give you a rough average of what your property is renting out for in the current marketplace.
Demographics and marketing count here. Is your property located in a student area? Does it have a particular novelty or flair to it which will attract certain types of customers? If so, your pricing should be suited to those looking for affordable homes. These sorts of questions are rarely asked by many landlords and can actually work wonders for your when deciding on rent price and even when advertising your property.
2. Get Rent Estimate Reports
Property Insights on Trademe gives you detailed reports and estimates on how much to charge for rent in a particular region, which takes away the guesswork. Instead of spending hours and hours on doing research yourself, these reports can show you the recommended rent price so you can stay competitive with other properties.
Rent estimate reports calculate the recommended rent price by comparing actual rents charged in your rentals area, and you get that info in the report. These data points will help you make informed decisions about pricing and marketing your rental.
3. Join your local landlords association
Your local landlords association is an organization within your town or city made up of other landlords and property investors.
Being part of such organization can be beneficial to your business in many ways. You can get information on potential property investments, stay up to date with property laws and even start networking with fellow landlords and property investors.
Becoming a member of a local association also means that you can stay up-to-date on the rental prices in your local region. Networking can be an invaluable tool. Asking around means that you can gain insights from others and in the process, build relationships.
Some people end up losing a ton of money due to poor or no research, leaving an idle property for months. With these tips, staying up-to-date on rental prices will be easy.
Start becoming a smarter landlord, take the right steps and you will avoid missing out on the best possible price for your properties.
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