The SECRET to pricing your rental right!

May 27, 2014

Pricing is one the most important things to consider when listing your property for rent.

Every day that your property is vacant, is another day that it is not producing income.

It is key to remember that any property, in any condition, in any market, WILL RENT if the price is right. By “right” we mean a price that the market will absorb.

The Secret to pricing your property for a quick rental is to analyze the recently rented comparables. Comparables are properties in the same area, of similar size, age, condition and amenities.

These comparables can be found using the local MLS. Your realtor/broker will have access to this invaluable system for information.

For example: Your property is ready to rent. Following our advice, you have your agent conduct a analysis for all similarly rented property in the last 3 months. If your analysis derives that the comparables rented for $2000, that is the number (or less) you should list for unless your property is superior to the comparables.

Things such as updated kitchens, baths and wood-floors are justification for asking $100 to $200 extra in rents. Again, this number depends on what the other property that had upgrades, rented for.

It is very important not to over-upgrade a rental property for its particular area.

If for example, the property is located in a middle-income area where rents area on average $2000 per month, it is not advised to install a $50,000 kitchen.

When in doubt, see what the comparable properties have done and do the same!

Standing firm on too high of a list price will only cost you money and time waiting for a tenant that may never rent from you.

Hire a good agent or broker that you trust and take their advice on the listing price. They do not get paid until the property rents and so are inclined to providing you good advice on the list price.

Tip: If you need your property to rent quickly, list at market price or under market price to catch the attention of prospective renters.