FAQ: What Should My Property Rent For?
Harbor Property Management takes rent very seriously. We understand that pricing a rental correctly will attract good, quality tenants. However, we know it can be difficult to decide how much to charge because, let’s face it, our owners want to make the most money as possible. We’re not going to gouge renters. If your property’s rent is too high, it may stay vacant.
Our team goes through a 3-step process in determining how much a property should rent for. From this process, we’ll put together a rent analysis of your property.
The following are questions we ask in determining a fair market rent:
Step 1: Is the property in good condition?
We charge slightly different rents based on how desirable the unit is. We look at flooring, paint, fixtures, landscaping, and appliances to determine the condition and value of the property.
We also examine amenities — such as parking, storage, wifi, washer/dryer access, pool, balcony, air conditioning, ect.
Step 2: Is the property in a good location?
Just like with any business, the neighborhood can have a big impact on your revenue. Great tenants look for a property that is close to their employment, as well as grocery stores, restaurants, and community parks.
It’s all about lifestyle quality, and a great tenant is often willing to pay more or overlook less desirable aspects of the rental unit if the property is in a good area.
An hour long commute to work or having to go out of their way to get a nice dinner can be a deal breaker for tenants who are looking for a long-term place to call home.
If your property is in a desirable location, you can attract higher-quality tenants and charge a higher rent.
Step 3: What do comparable units go for in the area?
Market Rents simply refers to the going rate for rental properties in a specific area.
Ultimately, your rent is determined by what the market will absorb. The most important information you’ll need is what other landlords are charging their tenants.
While we have a close finger on the pulse of the Southern California rental market, curious landlords can use the following free rent analysis tools as well:
- Padmapper – Enter a zip code and find local properties for rent (from Craigslist). Click on a local listing for rent rates as well as a calculation that tells you the price and percentage that listing is above or below other nearby similar properties.
- RentBits – Track average rental rates for the last 14 months.
- Rentometer – tool for comparing rent rates.
- Zillow – Zillow has its own “Rent Zestimate” data that can be found by entering any address into their search.
It’s important to note that different areas of Los Angeles county will bring different rents. Our experienced in-take specialist can provide you with valuable advice before your rental is listed.