Property Management Brainstorm Five Minute Friday #7 - Establishing the Rental Rate
Yes, property owners want to maximize their rental income. But if you set the monthly rent too high and the unit stays empty, no one generates any revenue at all! So, how do you decide on a monthly rental rate that keeps the property owner happy AND competes in the local market?
On this episode of Five Minute Friday, Bob explains the importance of correctly setting the monthly rental rate for a property. He discusses how the real estate market is influenced by supply and demand, location, amenities, and seasonality, offering insight around using ‘market comparatives’ to determine the rental rate for a given property.
Bob goes on to share how sites like Zillow have made prospective renters savvy to fair market value, what that means for property owners, and how North County collaborates with owners to set the monthly rental rate for a property. Listen in to understand how time of year impacts the monthly rental rate and learn how to adjust the rental rate if a property is not generating significant interest.
Topics Covered
[0:00] Why the monthly rental rate is one of the most important decisions to make about a rental property
[0:10] How the market ultimately decides the monthly rental rate
[0:18] How the real estate market fluctuates based on supply, demand, location, amenities and seasonality
[0:32] Using ‘comps’ as a benchmark to set the rental rate for a property
[0:54] How prospective renters have become savvy to fair market value + what that means for owners
[1:19] How North County Property Group collaborates with owners to set the monthly rental rate for a property
[1:34] What to consider if a nearby rental is set at a lower monthly rate
[1:54] How time of year impacts the monthly rental rate
[2:25] How the response we get to a listing in the first week tells us if we’ve set the rent rate correctly
[2:42] How North County initiates rent reductions if a property is not generating interest
Connect with Bob
Resources Mentioned
Best Practices for Renting Your Home: Learn the Pitfalls and Safety Nets from a Pro can be found at https://www.ncpropertygroup.com/ebook.
This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on
Connect with Bob Preston
https://www.propertymanagementbrainstorm.com/
This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.