Setting a rental price for your Chula Vista investment property can be pretty emotional. This is your property, and you probably have some pretty clear ideas about what you think it’s worth. Or, maybe you’re concerned about meeting the cost of your mortgage, your insurance, taxes, and repairs.
There are a number of factors that contribute to the price of a rental home – and you only have control over a few of them. This can be difficult for property owners to accept, but the market will drive the price of your home, not your own ideas. Today, we’re talking about how to set a fair rental price for your property, and how to balance staying competitive with earning as much as you can on your investment.
Consider Your Property’s Location
Location has an impact on how much you can ask for your property. If you’re in a good neighborhood with excellent schools and close to commuter routes, shopping, and entertainment, you’ll be able to charge more than you will for a more remote property that requires a commute to school or work.
Consider Your Property’s Size and Condition
If you have a three-bedroom, two-bathroom home with yard space and a garage, you’ll likely be able to charge more than you would for a one-bedroom apartment with no parking in the same neighborhood. The square footage is an important part of your pricing equation, but the number of bedrooms and bathrooms will also matter.
Even more important than size is condition. This is one thing you can control, so make the most of it. A property in excellent condition will rent for a lot more than one that has old and dated floors, dirty appliances, and an overgrown yard.
Price According to Season and Market
If it’s a tenant-friendly rental market, where there are more properties available than tenants to rent them, you’ll need to be more competitive with your price. If it’s a tight rental market and tenants are competing for well-maintained homes, you’ll be able to charge a little more because tenants will be willing to pay. Educate yourself on the South Bay, Bonita or Chula Vista rental market, and begin following its trends and nuances so you know how to effectively price your rental property.
Season plays a role as well. The most popular time for tenants to look for housing is in the late spring and early summer. No one wants to move during the school year. Things definitely slow down around the holidays as well, so consider the time of year when you’re pricing your home.
Compare Your Home to the Competition
Conduct a comparative market analysis so you’ll know what the market is asking for properties like yours. Take a look at homes in your area that have rented recently. Make sure you’re comparing your own property to those similar in size and features. You can look at listings online, but remember those are homes that are currently for rent. The best data comes from homes that have recently rented to tenants. Someone may be asking $2,500 per month, but they may ultimately settle for $2,350. You need to know what homes rented for, not what they listed for.
We can help you by providing a rental analysis that will give you a good rental range for your home. We price properties with the goal of earning you the most money while finding a great tenant quickly. If you’d like more information, or have more questions about your Chula Vista investment property, please contact us at Encore Realty.