Are you wondering how much to charge for rent at your Silicon Valley property? Rental pricing can be harder than you’d think! If you miss the mark, you can overprice your property and face long vacancies or underprice the property and not be able to properly maintain it.
Luckily for you, the experts at Action Properties can walk you through how to price your rental property. Keep reading to learn our top tips and factors to consider!
Market Research
Your property doesn’t exist within a bubble. In any local market, you are competing with other property owners to attract tenants. There are many factors that a renter will be looking out for and you can be sure that the cost of rent is one of the biggest factors.
You will need to do your due diligence and research the local market. How much are similar units being rented for in your area? What is the square footage? What about the amenities and services that they offer?
Consider stand-out features that you may have such as a basement, state-of-the-art appliances, and parking spaces. A market analysis should give you a good foundation when it comes to how to price your Silicon Valley home.
Location
Being an immovable asset, the location of your property will play a key factor in its pricing. Renters are looking for rental units that offer them convenience. In the ideal scenario, public and social amenities should be nearby and accessible. Homes that are near malls, schools, entertainment areas, and shopping centers can charge higher rent.
However, proximity to key, desirable areas doesn’t give you leeway to price your unit exorbitantly. If you price your rental unit above the market rate, you can expect high turnover as renters look for cheaper options.
Season
It could be that you are renting in the summer or winter season. And while you are looking to secure a long-term lease, the time of the year will also have a say.
You might find that the rent increases significantly in the summer but that rent for the same property falls in the winter when the demand dips. This phenomenon should be assessed as well during the rental pricing.
You can also take advantage of this factor and enter the market at the right time to make maximum returns.
Performance of the Market and Economy
The property market moves in tandem with the economy. When the economy is performing well, renters have the means and ability to pay their rent. During a recession, you might have to lower your rental pricing to accommodate your renters.
This shows the importance of continuous rental review. As the landlord, you need to be in touch with the local performance as well as push-pull factors that determine the local market.
Compliance with the Law
Property is a highly-regulated asset class. There are county ordinances, state, and federal laws that govern how landlords and tenants interact. As you figure out the rental pricing, keep relevant laws on rental rates, security deposits, and late fees in mind.
Talk to a Property Management Professional
There are several elements to take into consideration before coming up with the final rental figure. To help you along the way, you can consider getting in touch with a local property management professional. Their technical expertise and knowledge of the market will be helpful.
How to Give Your Property the Extra Edge
With the tips provided above, you will be able to set a competitive rental price for your property. But in every market, you will find renters who are willing to pay something extra for a stand-out unit. Your property could be that unit. With the right amenities and fixtures, you can increase the number of inquiries and reduce tenant turnover.
Here are some amenities that you should consider installing or upgrading.
Curb Appeal
Renters give significant attention to the ‘exterior feel’ of a place. We call it curb appeal. This is the first impression that someone gets when they walk past the property. To improve the curb appeal, consider giving your exterior walls a new coat of paint, adding in some new planters, and pressure washing the driveway.
Security
For the period of the lease agreement, your property is going to be someone’s home. They want to know that their new home is safe and secure. Outdoor lights with motion sensors can be a great and relatively affordable way to make your rental property safer for your residents.
Change Your Pet Policy
There was a time when having a pet was a firm no for most landlords. But with more people than ever owning pets, not allowing them in your property can mean losing out to a significant number of potential tenants. By changing your pet policy, you make your property attractive and increase the chances of landing a quality and long-term tenant.
Also, don’t worry about damage to your property. You can rely on a property management company to screen both the tenant and the pet. In addition, you can also charge pet fees and pet deposits to cover any potential damages.
Price Your Property Right with Action Properties
Starting with the right price is key to the success of any rental property. However, that is just the first step. You must also consider the management of the rental unit. Management requires a hands-on approach and many property owners lack the experience and expertise. For all your property management needs in Silicon Valley, the company to rely on is Action Properties.
We are a full-management property company that offers end-to-end services for our clients. Our clients rely on us for comprehensive management services and we provide them. We offer marketing, tenant screening, rent collection, lease compliance, and property maintenance among other services.
To maximize your return and protect your investment in real estate, get in touch with us today!
Disclaimer: This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.