Establishing a rental value is an important part of finding a great tenant and limiting your vacancy period. Your rental price will depend on a number of factors. Ultimately, the amount you charge will reflect the Phoenix rental market. You cannot price your property much higher than what the market demands, otherwise it will remain unoccupied.
Every landlord wants to charge as much as possible; you don’t want to lose money from month one. However, overpricing your home can often be more expensive than underpricing it. Study the market and get to know what homes similar to yours are renting for.
Market influences as well as the size, location, and condition of your property will affect its price.
Property Location Impacts Rental Price
Everyone knows that location is an important factor in real estate.
You’ll be able to charge higher rents when your property is located in an area with good schools, easy commuter routes, and within proximity to shopping, grocery stores, and other types of retailers and recreation. These factors stack up well compared to rental homes that are in more remote locations.
When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as your own. Rental prices can change from neighborhood to neighborhood and even from street to street.
Evaluate the Size and Floor Plan of Your Phoenix Rental Home
Most single-family homes with a garage and a yard will rent more than an apartment with no outdoor space or dedicated parking. Make adjustments to your price if your rental home is too small for the area or even if it’s too large. It’s rare to find someone in Phoenix who wants to rent a seven-bedroom mega mansion with six bathrooms. Open floor plans, fenced backyards, and amenities make a difference in your price for a single-family home, and extra storage, great views, and updated appliances and common areas will help you earn more on a multi-family unit.
Property Condition Can be Controlled and Impacts Price
There’s not much you can do about your property’s location and size.
However, you can control its condition. Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants.
Pay attention to any work or cleaning your property may need. Everything should be in good shape before you attach a price and rent it out. Consider making a few small and inexpensive upgrades. Fresh paint, new floors, and minor improvements can help you earn more in rent. For example, if you put in ceiling fans or energy efficient appliances, you’ll be able to ask for more rent every month, and your tenants will appreciate the lower energy bills. New hardware on the cabinets and drawers can make your kitchen look brand new. Upgrade the lighting and the window blinds.
These small things won’t cost you a lot, but they’ll help you earn more money every month.
If you’d like to talk about your specific property and what we think it could earn on the Phoenix rental market, please contact us at Zen Rent Property Management.