Pricing your Fort Worth rental home correctly is an important part of your overall investment success. Pricing impacts the length of your vacancy, the types of tenants you attract, and the amount of money you earn on your property.
No one wants to charge less than what their property is worth. But, overpricing is just as dangerous. It can leave you with a longer vacancy, and that’s money that you’ll never earn back.
When you’re establishing a rental value on your property, talk to a local property management company, and make sure you understand the market.
Conduct a Market Analysis
The first thing you’ll need to do is a complete market analysis. You don’t want to put an arbitrary price on your rental property based on what you see on Craigslist ads. Instead, you want reliable data that is gathered by experts in the local market. This is where a property management company can help. We rent out homes in Fort Worth every day. We understand what properties are renting for in particular neighborhoods and what tenants are looking for in terms of budget, location, and condition.
Gather the data on what properties are renting for and how long it’s taking them to be leased.
Compare Your Property to the Competition
Once you have reliable data, make objective comparisons. Look at your property and consider how it compares to those for which you have accurate rental values. If your home is a little bigger or offers benefits and amenities, you can probably price it at the top of the range you’ve found.
Make sure you’re comparing your property to those that are similar. If you have a three-bedroom home with a yard and parking, you don’t want to compare the rental value to a one-bedroom apartment downtown.
Make some Upgrades and Updates
If the research and analysis you’ve done doesn’t make you feel great about the rental value of your own property, make some improvements that may affect the price. Tenants may be willing to pay a bit extra for upgraded appliances or low-maintenance flooring that’s easy to clean and attractive. You can raise your price a bit if you include services such as landscaping.
When it comes to pricing your rental property, you don’t have a lot of control over things like location and age. You cannot affect market trends or strength. But, you can control the condition of your home, and that impacts your price as well. Improvements and upgrades better your chances for longer tenant retention.
Commit to Flexibility
Track the response you’re receiving or not receiving once you list your home. If you’re not receiving any calls or inquiries at all, your price may be too high. Be willing to lower the price if you’re not getting the interest you expected. Always keep an eye on the rest of the market, and be flexible. It’s better to lower your price a little bit to get a good tenant in place. Stubbornly holding out for a higher rent will only extend the amount of time that rent isn’t coming in at all. The prospective tenants with the best credit are the ones looking for the best deals.
We provide expert property management in Fort Worth, and we’d be happy to help you establish a competitive and profitable rental value. Contact us at Trend Property & Management.