Determining price is the most critical step in preparing your home for lease, so you can get the highest return in the least amount of time.
MARKET CONDITIONS, ACTIVITY AND TIME
Current market conditions will determine your rental pricing strategy, which in turn affects the number of tenants your property attracts, and the time it takes to lease your property. A property receives its best exposure during the first one to three weeks on the market.
GETTING THE BEST RETURN
- When your rent is too low, you could lose money on your investment.
- Overpricing is risky. Qualified tenants best suited to the property won’t see it because it’s out of their price range. Those who can afford the higher price range may not feel that the property meets their expectations.
- Leasing agents will hesitate to show an overpriced property, unless it will make a competing property look like a better value.
- Statistics show that the longer a property is for lease, the more it lowers the rental price.
PROPER PRICING WILL:
- Attract the maximum number of qualified tenants, within a timeframe that suits your needs.
- Get your property leased more quickly.
THE PRICING PROCESS
- Pricing is based on the amount a renter
is willing to pay, as determined by current market value.
- You’ll receive an estimate of value based on an analysis of:
– Similar homes for lease now. These show which properties prospective tenants are comparing to your property.
– Similar homes recently leased. These tell you what tenants are willing to pay for your kind of property, in your area, at this time.