Pricing Your Plymouth Property to Rent
When creating an ad for your Plymouth rental property, you should already have an idea of how much to charge as rent. You can’t assign a random price or set it on a whim. It should be properly considered.
Coming up with an accurate rental price requires careful planning. The more optimal the rental fee, the better your income and the more renters you can attract.
What should you check before setting the right rental price for your Plymouth rental? You can start by evaluating your competition.
Research rentals that are similar to yours based on:
1. Neighborhood
Why is it vital to check the same section of the neighborhood when doing a rental comparative study? This makes for accurate pricing since some neighborhoods are priced above average due to high demand and the type of rentals available–such as luxury homes.
If you follow the rental fee of another neighborhood, your rate can either be too high or too low, depending on the average rental fee of your neighborhood. Consider that other rentals also offer amenities and features you might not have.
2. Number of bedrooms and bathrooms
The size of your property matters a great deal. That’s why the more rooms your Plymouth rental unit has, the higher the rental fee should be.
3. Property type
Potential tenants will pay more for larger units that offer more privacy. Whether you're renting out a three-unit property or six-unit building can make a difference to how much you can charge for rent.
4. Age of rental unit
If your Plymouth rental is newly built then the amenities are brand new. The home systems, such as its plumbing, electrical, air conditioning and heater, are likely not going to have issues.
This can be beneficial and convenient to the renters since they don’t have to report repairs as much as they would in an older unit. Thus, you can assign a higher rental fee.
Best Sources for Rental Pricing
Other landlords - when you schedule an in-person meeting with a landlord, you have more opportunities to ask questions. You can evaluate the responses if a lot of interested prospective residents have shown up and booked property tours.
Online ads - you can conduct your research online and check out popular listing sites to evaluate the ads. Monitor properties close to yours and check the rental demand. Did the rental sit on the site for a while? Were there several price adjustments over the course of the week?
Property management companies - another useful way to learn if your rental price is accurate is by consulting property management firms. A lot offer this service for free so you can maximize the opportunity.
Reach out to a reputable company and discover how much you should set the rental fee for your Plymouth rental home. With the company’s immersion in the industry, their rent price analysis tends to be far more accurate.
Price-Setting Based on Amenities
For your Plymouth rental, setting a uniform rental price shouldn’t be practiced especially if you own several rental units. Assess each property based on its features. Some rental spaces may be priced higher based on the following characteristics:
1. View - Does your property have impressive scenery? If your unit offers a scenic view, you can raise the rent price to reflect this amenity.
2. Upgrades - Did you recently remodel your bathroom or kitchen? If yes, your rent price can be higher compared to properties that haven’t been renovated. Renters appreciate property improvements and new features.
3. Size - You can base your rental fee on the square footage of your rental space.
4. Floor level - Is your rental unit situated on a higher floor? Usually, rentals located above can have better views and more privacy, so the rental fee assigned is higher than those on lower floors.
5. Extra spaces - Does your unit have a balcony, patio, or rooftop? These additional outdoor spaces can be attractive and you can consider setting a premium rental price for them.
6. Parking area - Do you offer a parking space? If your tenants commute to work or own a vehicle then they need to protect it from bad weather. You can assign a higher rental rate if you provide a parking spot.
An Optimal Rent Rate Drives Profit
Once you’re able to accurately price your Plymouth rental property, all your operating costs can be covered such as the cleaning fees, maintenance and repair costs, and perhaps even your mortgage payments every month.
Owning a rental property should be a source of passive income leading to financial freedom, meaning you should be seeing a positive ROI every month.
Consider the Demand When Setting the Rent Price
You may think you no longer need to review your rental rate after setting it. But this isn’t the case. You should always consider the current market conditions. Is inflation higher? Are more people interested in renting in your location? Is there better infrastructure leading to higher demand?
This can also go the other way. Is there more competition in your neighborhood? Are newer rental units constructed? It’s advisable to keep assessing your environment and to be flexible when adjusting the rental rate. Listen to the news and be aware of the local economy to ensure your rental fee is accurate.
Bottom Line
If you need help setting an accurate rental fee for your Plymouth rental property, partner with a property management company. At Howzer Property Management, we are experts at setting rental rates. Our services also include marketing your property, screening tenants, collecting rent, and performing property maintenance. Get in touch with us today!