Rent-setting is a task you must accomplish prior to advertising your Regina rentals. It’s not a thing you perform in a haphazard manner since this can adversely affect the income you earn and your marketing results.
You need to take time to analyze and assign an accurate rent rate, so you’ll be able to attract prospects without losing out on investment returns. There are several steps property owners can take to help arrive at the right rent price. To learn more about setting the right rental price, keep on reading!
Things to Consider When Setting the Price
You can compare your property to the competitors around you. Look at rentals that have a lot of similarities with your Regina rental home. Consider the following:
The rentals around your neighbourhood provide you with the proper range on how much rent fees to collect. It’s best to stick with your area of the city since other neighbourhoods can have different rent prices even if the unit has a lot of things in common.
What’s more, remember that demand affects prices. Popular locations tend to have higher-than-average rental rates. Some neighbourhoods can also offer more amenities in their areas such as parks, community pools, and recreation centres.
As a result, they have greater liberty to assign high rental fees since they can attract more potential renters.
Number of Bedrooms and Bathrooms
If your Regina rental home has more bedrooms and bathrooms, you can set a higher rent rate compared to a unit that only has a single bedroom. In general, tenants opt to pay higher rent on properties that have more bedrooms and bathrooms.
Privacy matters a lot to tenants, so single-family rentals are more expensive to rent than multi-family units. There are no common walls and more spaces can be enjoyed in single-family properties.
Period the Property is Built
It goes without saying that if your property is newly constructed, you can set a high rental rate compared to the older rental units. Given that the furnishing, home systems, and amenities are new, the renters know that there are fewer property issues, making it more convenient to live in.
Best Sources for Rent Pricing
There are several things you can do to help you establish an accurate rent rate. Let’s look at the best sources for determining rent prices to ensure that you’re assigning an accurate rent price in your Regina rental home:
- In-person - Meeting with landlords is a good way to assess rental rates. Landlords can provide you with insights into how much interest their rental unit is generating based on amenities and rent pricing.
- Online - If you prefer to research online, you can check out popular online property listing sites. Choose a couple of rentals similar to yours to monitor and record the rental rates. Over a few weeks, you can observe which ones are quickly rented and which ones continue to be vacant.
- Property management companies - A property management firm paints a more accurate picture when it comes to rental price setting. They have industry experience and can perform a rent analysis.
Price-setting Based on Amenities
Coming up with a uniform rent price for all your Regina rental units is highly discouraged. You may lose out on income this way. It’s better to check the individual features of each unit. If you have multiple properties and units, you can price then differently based on the following:
- View - With impressive views, your rental fee should be higher. You can charge more if you have a park view compared to a parking lot scene outside your windows.
- Renovations - If you’ve cared out upgrades such as a kitchen redesign or have a newly installed granite countertop, you can increase the rent. Most people are interested in rentals with upgraded features.
- Size - The greater the area, the higher the rent fee you can assign.
- Floor level - Top floors usually command a higher rental rate given the incredible views they provide. Walk-ups are an exception to this.
- Outdoor spaces - Extra spaces outside the rental gather more interest, so you can set a higher rental fee.
- Parking area - For renters who own a personal vehicle, a secure parking spot is a must so they’re open to paying more rent.
A Profitable Rent Rate
Though the initial property investment is costly, you should still be able to cover the maintenance and cleaning fees and generate a profit. If you cannot, this can reflect that you’ve over-invested. One should avoid operating at a loss even if there’s a mortgage payment to be made. Make sure that your rent rate can cover all expenses and generate a profit.
Interest from Prospective Renters
If there are more property showings lined up, you can assume that there is a high degree of interest in your unit. One of the factors that leads to low interest from potential tenants is the rental price. If it’s too high, without justifiable reason then people won’t consider renting the property.
Weigh Market Demand
The rental market is dynamic. As a landlord, you must always be attuned to the economic and industry trends, and demand and supply. Be ready to adjust rent prices, especially if you have a month-to-month tenancy setup or short-term rentals in your Regina property.
If the economy is in a recession, you might consider lowering your rental rates since more tenants will be picking units that are cheaper.
If your property’s location has new infrastructure projects or businesses coming in, and local attractions are being built, then you can adjust the rent higher as these can generate more buzz for an area, thus increasing the demand for properties.
Setting the price of your Regina rental home can be done with sufficient research. You must be aware of the crucial factors that affect rental prices and be quick to perform rent price adjustments. Being alert ensures you’re protecting your rental income returns and maximizing the income your rental generates.
If you would like help managing your rentals, contact the experts at Cressman Realty & Property Management today!