THE RENT PRICE
When it comes to setting a rental price for your property, it’s about half art and half science.
Each factor below should be considered carefully:
Analysis is based on square footage of the property, comparative rent price history for that area, and the value of real estate within that proximity. These combined factors reveal a low, median, and above market rent range that we use in determining rent price.
Another source that determines rent value is the product you provide to the rental audience. The standard you set for your property has a huge influence on pricing. Special features like extra storage, large closets, on-suite bathrooms, newer appliances, off-street parking spectacular views, etc are impactful factors when determining property a rent strategy.
There’s no getting around it – location is a major player in price determination. Your rental audience will pay a higher premium for the convenience of close proximity to parks, transit, restaurants, theaters, cafes, groceries, and schools.
SUPPLY AND DEMAND
Some neighborhoods in our market are more popular than others. Lack of inventory drives a higher rent value as less options are available to prospective renters.
To understand the scope of your decision regarding audience base, consider this: according to a recent Humane Society of the United States survey, 68% of American households included at least one pet. If you choose to have a “No Pet Policy”, you will be limiting your rental audience by 68%, which will have an effect on the amount of time it will take to rent your property. There is a better approach to this important decision.
OBLIGATION AND OBJECTIVE
Most properties have a mortgage attached, and some will have HOA fees as well. Taxes, insurance, repair, and maintenance will always be part of your rental business, so it’s imperative to understand the expenses that should be covered in order to profit from your investment. You’ll also need to consider whether you’d like to aim for a higher rent price and risk the time it may take to fill the vacancy, or if you’d prefer to fill the vacancy quickly with a lower rent price and plan for a raise in rent down the road
Every business is seasonal, and the rental real estate market is no exception. We recommend testing higher rent prices at the peak of the warmer season, not the wetter, colder part of the year. Portland can usually rely on beginning a peak season around mid-March and wrapping it up around mid-October.
The most important factor in rent pricing is listening to your rental audience. We can set any rent price, but the market will inevitably tell us what it should actually be. Be prepared to be flexible when necessary, and to discuss strategy depending on activity levels while your property is on the market. This means paying close attention to things like number of showings, lack of response, and direct consumer feedback as a gauge to guide needed changes.
RENT HIGH OR FAST?
The decision to rent high vs renting quickly for a lower price largely depends on your goals, but if making money is your goal, renting your home quickly is by far your best option. Every month of vacancy costs you 8.3% of your potential yearly revenue, so based on an average market rent of $1500/month, you’d be better off financially to rent your home at $1425 rather than let the home sit for a month longer than necessary.
- MARKETING YOUR PROPERTY: Professional marketing photos and advertising on multiple high traffic rental websites.
- LEASING AGENT SHOWINGS: Implementing our advanced showing platform, making it easy to schedule and see the home.
- TENANT SCREENING: Criminal background checks, credit reports, income verification, rental history & eviction history.
- TENANT ONBOARDING: System set up and data entry.
- ADMINISTRATIVE COSTS: Printing and copies, accounting, legal counsel, support, etc.
- CC&RS OR HOA INSTRUCTIONAL: Ensures tenants are aware of all rules and regulations in the community.
- UPDATED MARKET COMPS: Professional reporting allowing you to maximize your investment.
- LEASE REQUIREMENTS OVERVIEW & NEW LEASE NEGOTIATION: Determines the best market rent, and provides clear understanding of lease to tenants.
- LOCAL EXPERIENCE: Ensures the proper knowledge, licensing, and insurance combined with expertise on area rental rates.
- ADVANCE TECHNOLOGY: Makes rent collection and submitting maintenance requests easier.
- STREAMLINED RENT COLLECTIONS AND EVICTIONS: In compliance with all regulatory agencies. Ask about our Eviction Protection Program.
- 24/7 EMERGENCY HOTLINE: 24/7/365 TENANT ACCESS TO PROTECT YOURSELF: 24/7/365 tenant access to protect your asset
- TRAINED STAFF: Ensures professionalism, consistency, reliability, and great care for your home.
- MANAGEMENT OF TENANT EMERGENCIES AND REQUESTS: To limit expenses and liability and lower turnover.
Preventative maintenance involves periodic reviews of your property’s interior and exterior, including inspection of:
- HVAC filters
- Smoke and fire alarms
- Carbon monoxide detectors
- Fire extinguishers
- Dryer vents
- Home systems
We’ll assess and survey interior conditions of the property to help prevent potentially costly issues such as lease violations, pet policy violations, unreported damage, leaks, or running water, neglected maintenance or cleaning issues, and possible hazardous storage or hoarding issues.
UPON EACH REVIEW, REAL PROPERTY MANAGEMENT WILL PROVIDE A WRITTEN REPORT, ALONG WITH PHOTOS OF THE INTERIOR AND EXTERIOR AND SPECIFIC RECOMMENDATIONS FOR VALUE PRESERVATION.