How much is my house/property worth?
This is almost always the first question that I am asked when interviewed. Everyone wants to know what their property will rent for and they typically want an answer before we even start discussing management.
Several factors need to be considered before a price range can be established.
- Size
- Condition
- Age
- Amenities
- Location
- Competition
- Market
Size:
The size of the unit is not just the number of bedrooms and bathrooms; it includes the square footage. A 1500 Sq. Ft., 4 bedroom, 2 bath home may rent for less than an 1800 Sq. Ft., 3 bedroom, 2 bath home.
Condition:
Prospects are not going to pay top dollar for a rental with poor upkeep or deferred maintenance therefore affecting the rent.
Age:
Newer homes can generate more income than older homes that offer the same number of bedrooms, bathrooms and square footage.
Amenities:
Does the property come with a dishwasher? Central Air? Fenced Yard? Family room? Garage? All of these factors need to be considered to accurately valuate the property.
Location:
Is the property in a part of town with a bad reputation or surrounded by neighboring homes that are not well cared for?
Competition:
Other companies have a similar units listed. What are they charging?
Market:
Regardless of the above factors you need to make sure that the market can sustain the rent you will charge. Collecting a lower monthly rent may not be ideal but it is better than having a home sit vacant for months.