Before you can list your Boca Raton rental property, find a great tenant, and start collecting rent, you need to know how much that property is worth. This can be a source of confusion and contention for some property owners. You may have a specific idea in mind about your home’s rental value. You might need to earn a certain amount every month in order to earn the cash flow you’re hoping for.
The most important thing to remember, however, is that the market really drives what you can charge in monthly rent.
If you over-price your property, you’re going to face a longer vacancy period or you’ll attract tenants who have been rejected elsewhere and are feeling desperate enough to pay a higher price.
It’s your responsibility as a landlord to price your property accurately and competitively. Here are some of the steps you should take when you’re deciding how much to charge for your Boca Raton rental property.
Compare Your Property to Others on the Market
When you’re establishing a price for your rental home, you need to get some comparable rental values. Take a look at homes similar to yours and in the same neighborhood that have recently rented. Make sure your price tag isn’t too far outside of the normal range.
Reliable data is key. You can look at Zillow and Trulia and HotPads and other rental sites for an idea of what properties are listed for. But, the most reliable information will come from a Boca Raton property manager, who knows what the homes rented for, how long they were on the market and whether any price reductions or other incentives had to be offered.
Consider Your Boca Raton Rental Property’s Location
It’s well-known that location is an important factor in real estate. You’ll earn more rent if your property is located in a desirable location. If you’re near good schools, easy commuter routes, and close to shops, grocery stores, and retailers, you’ll be able to earn more in rent than if your home is more remote.
When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as you. Rental prices can change from street to street and block to block.
Property Size and Condition Factor into Price
Single-family homes often earn more rent than apartments. Most renters in Boca Raton are either looking for low-maintenance two-bedroom condos or single-family homes with three bedrooms, two bathrooms, a garage, and some outdoor space. You’ll need to lower your price a bit if the property is too small for the area or even if it’s too large. It’s rare to find a long-term renter looking for a studio or a seven-bedroom home.
There’s not much you can do about the rental market, and you only have so much control over your property’s location and size. However, you can control its condition. Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants. If your property needs work, get that done before you set a rental price.
One of the best ways to accurately price your rental property is by working with a professional Boca Raton property management company. We can ensure you earn as much as possible in rent every month, while still maintaining competitive and avoiding long vacancy periods. Contact us at Domu Properties for some help or more information.