Here at Red Roof Rentals, one of our guiding slogans is this:
“Get it rented to the RIGHT PERSON for the RIGHT PRICE … RIGHT AWAY!“
Selecting the “right person” is a matter of careful screening (to be dealt with in a later blog post) but today I want to focus on just what “the right price” means. What would be fair rent for your home and how is it calculated?
One service a professional property manager can provide for the property owner is to give an estimate of a home’s fair market rental value. Private parties frequently set the wrong rental price on their property, both too high and too low! Both renters and homeowners appreciate a fairly priced rental- it’s a win-win situation that’s good for all!
TOO HIGH– Some owners want to cover their home mortgage payment with the rent and as a result overprice their property. The fact is that there is no connection between what your home payment is and what it should rent for. The rental value is determined by what interested renter’s are willing to pay to rent your home.
TOO LOW – Other owners will set their rents too low. They’ve been renting the house for $700 for the last 10 years and they don’t want to “rock the boat” and lose their renters. Imagine their surprise when we tell them they will make $300 more by hiring Red Roof as their manager, even after paying us our management fee!
JUST RIGHT – At Red Roof we determine an estimated “FAIR RENT” of your home using:
- General knowledge of local rentals based on our 30+ years experience
- Specific knowledge of what WE have been renting similar properties for
- Careful analysis of data available from Craigslist postings of similar homes
For example, we know from our research that many 1,000 square foot homes rent for about $1,095 and most 1,600 square foot homes rent for about $1,395. Adjustments can be made to these price points in consideration of quality level and neighborhood desirability.
Want to know what YOUR home will rent for? Call the professionals at Red Roof Rentals and let our 35 years of real estate experience go to work for you today!