Investment real estate can be a challenge to manage even for a property owner who is hands-on and owns only a handful of properties. This challenge balloons for those who have a large number of properties to manage or who are unwilling or unable to be actively involved in the day-to-day management of their properties. Working with a local property management company is an excellent way to manage these challenges, and one of the key ways that they can make a difference in your day-to-day is in helping you to price the property appropriately. They can answer the question: “How much rent should you charge?”
Finding your ‘Goldilocks Price’
Finding a balance for your rents that allows you to pull in a profit from your property while still attracting enough well-qualified tenants is a big challenge. You want to bring in sufficient revenue to manage all of your properties expenses, including the mortgage and repairs, and ultimately want the property to generate enough revenue that you generate a profit on your investment.
Priced too high and you risk the property sitting empty for weeks or months. Priced too low and you risk losing revenue that you could be earning through rents. Finding that “Goldilocks Price,” the price that is just right to attract qualified tenants and maximize your income, is a significant challenge to overcome. Finding that balance may sound more achievable than it is, and is one thing that a local property management company can help you to accomplish.
A skilled local property management company can help you to explore all of your options and understand what the market in your area can handle. They can perform the comparative market analysis and dial in the price point for your property. A vacancy is one of the primary reasons landlords lose money on rentals, so establishing this price point accurately and quickly will help keep your properties earning. Also, working with a property management company can help you to price your property to attract the type of tenant you want.
In addition to helping you to price and advertise your property, a property management company can offer you many other services. If you have not done so already, take the time to research options in your area. A local North County property management company can help you learn more about your needs and options, and pursue the opportunities available to you. If you need help choosing a property management company, you can download our free Guide to Finding the Best North County San Diego Property Management Company. Ready to set your rental rate? Get a free rental analysis from Raintree Property Management.
