Before launching the marketing campaign for your Williamsport rental home, you must first determine how much you are going to charge. But this isn’t as easy as it sounds. The best rental rate is a value that is competitive in the market but does not sacrifice your profit.
At One Focus Property Management, we believe that setting the right rental price is critical to your success as a landlord. This is why we have put together the following article:
What Are the Different Factors for a Pricing Comparison?
Before deciding on an optimal rental value, you need to take a good look at your competition. Focus on rentals that are similar to yours and offer comparable amenities. You can compare your property using to them these key elements:
The Neighborhood
It’s important that the property you’re comparing to is situated in the same Williamsport neighborhood as yours. Individual neighborhoods differ in terms of perception and security. Some have a high rent as the market demand for that specific area is high. They may also be closer to parks, schools, or other local attractions.
The Number of Bedrooms and Bathrooms
The property you’re comparing your Williamsport rental home should have the same number of rooms for a fair comparison.
Is it a Single-Family Home or a Multi-Family Home?
Single-family homes are normally preferred and tend to fetch a higher rental price than a unit within a multi-family complex.
Is it a New Construction or an Old Construction?
If your Williamsport rental home is newly constructed, its rental price should be understandably higher when compared to a similar, but older, property.
How to Check for Comparable Properties
As a landlord, there are several ways to compare your Williamsport rental home against other properties. Here are some of them:
Through Online Ads
Using an online search, you can simply visit property sites like Trulia, Zillow, and Apartments.com. Track a few rental properties and analyze the ones that get snatched up from the market easily.
Go In Person
Perhaps it’s easier to see comparable rentals in person for a detailed evaluation. By making particular inquiries, you’d be able to conclude the level of interest from potential renters.
Hire A Property Management Company
One of the main pros of getting in touch with a property management company is that they often provide a free rental analysis. With their industry experience, they’re able to set an accurate rent for your Williamsport rental home.
Best Factors to Consider When Adjusting Rental Prices
If you never change the rental rate for your Williamsport home it is bound to result in income loss. To optimize your earnings, take the time to assess the value of your different rental spaces in terms of amenities, views, and square footage.
Here are points to think about:
- If you have a waterfront view then you can assign a higher rental rate since these appear calming to the occupants.
- If you’ve improved your flooring, purchased new high-quality appliances or keyless locks, or renovated your rental space, then the rental rate can be higher.
- The larger your property is, the higher the rent you can assign as many people prioritize having space and room to move about.
- Do you offer several storage spaces, outdoor areas, and a parking spot? If yes, you can rent out your unit at a higher price.
An Accurate Rent Price Leads to Better Earnings
To check whether your Williamsport rental home earns good returns, check your bottom line once all the maintenance, cleaning, and repair fees are deducted. This also includes mortgage payments. Note that a bigger loan can also affect your profits so it may take a bit of time to feel the earnings you’re making.
Analyze Property Showing Requests
Another specific way to review the rental price of your Williamsport rental home is by looking at the number of properties showing requests you’ve booked. If there are many requests then this shows your price is potentially too low for the area.
Additionally, if the rate you choose is too high without providing valuable amenities, you may end up with a vacant rental space for a lengthy period.
Observe the Market Demand
Rent rates should be regularly reviewed. So be aware of the market demand for your Williamsport rental home and don’t hesitate to adjust your pricing. Seasons can affect prices, prevailing market conditions, and higher location demand.
Your rental demand gets affected by vacation peak times, inflation, and new infrastructure so it pays to remain observant in these areas.
If the demand is lower, you can reduce the rate and if the demand grows higher, then you can also increase the rate. Empty units can also mean additional maintenance costs, so factor in this when creating incentives for renters to stay longer and renew their leases, especially if they are on a month-to-month lease.
Always focus on the movement of the market before proceeding with rental rate adjustments so your income is optimized.
Bottom Line
Landlords can use several methods for pricing their Williamsport rental home. You can start with a simple neighborhood comparison and then add an online assessment of rentals comparable to yours. Or you can also book a property showing at a similar rental unit.
If you have less time to accurately price your Williamsport rental home, contact One Focus Property Management today! We also offer an outstanding and wide array of property management services that are beneficial to property owners.