You can get a good feel whether or not the price you set for
your rental property is right by the number of inquiries you get and the number
of people that take a look through your property. If you are getting less than
3 inquiries each day within the first 3 weeks, more than likely, something is
wrong with your advertisement - the price, the photos or the write up is
probably not grabbing your target audience’s attention. I like to make a small
change to each of these components in this situation.
If your rental price is set too high, you are more likely to
receive applications from tenants who are desperate, those who are willing to
pay more than the property is actually worth because they are in desperate need
of a property. And although people often equate a higher price with status, if
your property does not have the location or amenities to back up the higher
price tag, prospective tenants will have no desire to see your property.
One important note is that some agents deliberately set
rental prices at 5% less than the market value to attract better tenants in
less time to their vacant properties. Not only does this reduce the time it
takes to find your tenants (saving you money), this also plays a major part in
less tenant turnover, less rent arrears and less general tenant issues during
the tenancy.
To ensure a smooth tenancy, it is important to get the start
right, and that begins with setting the right price. I hope the information you
gathered was useful in helping you to manage your property.
RealRenta has all the
tools that a property manager has but for less than ¼ the cost of a property
manager.
You can now manage your Residential, Commercial or share/student
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Join now and the cost
is less than a cup of coffee a week to manage your rental property.
RealRenta also has a
free vision, so why not check it out.
Jason Gwerder
Saturday, 16 November 2024
