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Updated 15 days ago on . Most recent reply

Account Closed
2
Votes |
5
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Property manager rent fee suggestion to low?

Account Closed
Posted

I am going to have my first rental property by June 1 and met with a property manager. I need $2,200 to cover my mortgage/HOA fee. She says 1 bed, 1 bath condos start at 1,800 a month and says to be honest a lot of people in Hawaii are negative in their returns since its so expensive. A comparable unit in my condo rented last year at $2,000. And a two bed rented for $2,300. Yet I have a coworker who is renting a 420 sq foot studio for $2,375 a month plus $80 for electricity not far from where I live. She also lacks a dishwasher, balcony, no view, no in unit washer/dryer and no guest parking. What would you rent my condo out given this information?

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,390
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Account Closed:

I hear this a lot from owners. 

"I can rent my place for $2,400 a month. Why are you quoting me $2,200?"

Sometimes, a private landlord is patient and can get a higher price. Sometimes, they just get lucky. Sometimes, the devil is in the details and the deal isn't really as good as it sounds.

As an experienced manager, I know what the market will support to find a quality renter who will pay on time, take care of the home, and stay for at least the term of their lease. If you want a higher price, it comes with the risk of a longer vacancy, a tenant who can't afford the rent, a tenant who breaks the lease to move to something cheaper, etc.

Even if you could rent it for $2,200 a month, it probably won't cover your expenses. You must pay management fees, maintenance, taxes, insurance, and other expenses, such as vacancies.

  • Nathan Gesner
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