There are many factors involved in setting rental rates before listing a property. None of these factors is more important than understanding the current market and "rental comps" in the area surrounding the home. At North County Property Group, we wil always study the market, understand what similar homes are renting for in the neighborhood, and make our rental rate recommendation. We’ve also added a new tool to the North County Property Group website where visitors interested in obtaining an rent rate estimate can get a rental analysis emailed to them within just a few minutes. Anyone can give it a try by going to this link on our website to enter your address and give it a whirl!
Studies published by the California Association of Realtors show that homes listed above market value have a decreased probability of being considered by prospective tenants. Pricing a home closer to market value will attract a bigger pool of potential tenants and help assure your home is rented quickly.
There are, of course, other factors involved in setting a rental rate such as upgrades in the home, amenities included (utilities, gardener and pool service, etc.) and curb appeal. These additional factors may bump up your rent rate slightly, but in today's age of online access to Zillow and other real estate websites, the savvy tenant will know what the market estimate is for a property before even inquiring. We are willing to try a rental rate that is higher than market value on a home, but as we tell all of our clients, "we don't set the rental rate, the market does." Aiming too high typically becomes immediately apparent because, despite our best marketing efforts, little interest is generated for an over-priced home. We find that even an amount as little as $100/month rent differential can make a big difference when establishing rent rates.
We are always happy to collaborate with our clients on the current state of the market. If you would like to see a current rental analysis for you home, visit the link provided above and self-serve or contact us and we will do it for you and share the results.