Before you can advertise your Jacksonville rental home to potential tenants, you need to assign the right rental price. Setting the right rent requires studying the different factors that affect the rate.
If you successfully come up with an accurate rental price, you’ll attract a lot of prospects to your unit. This leads to more regular earnings from your rental property. If you want to learn how to set the right rent for your property keep reading!
Examining the Comparables to Arrive at the Right Rent
To know the right rent rate to assign for your Jacksonville rental, you need to check out your competition. Choose the ones that are the closest to your rental type with similar amenities. Review these factors:
Explore the areas around your town and focus on properties situated in the same Jacksonville neighborhood. Keep in mind that rental prices would differ depending on which area the property is located.
Certain neighborhoods are bound to be more attractive leading to higher demand. Thus, a higher rent price is often the norm in some sections of the town.
Number of Bedrooms and Bathrooms
Ensure that the rental properties you’re doing a comparison with have the same number of rooms as your Jacksonville unit. You also want them to have similar square footage for an even more accurate price comparison.
Single-family Homes vs Multi-family Units
Avoid assigning the same rent rate with a multi-family unit if you own a single-family home in Jacksonville. The latter are priced higher since the occupants are afforded more privacy.
New Construction vs Old Construction
The newer your rental home in Jacksonville is, the better the rent price you can set. The convenience of new home systems, appliances, and modern amenities is a desirable factor that renters place a premium on.
Rental Comparison Sources
Landlords have several sources for contrasting their rentals such as:
- Online Ads - You can easily evaluate the rental properties in your Jacksonville area just by visiting the popular listing sites. Monitor a couple of rental homes and observe which ones are rented out right away. Track those whose prices are adjusted lower and properties that have remained listed for some time.
- In-person - If you have the time, you can also visit the rental homes. This way, you’re able to check out the details and amenities close up. Inquire from the owner if interest has increased for the rental.
- Property Management Companies - There are plenty of property management companies offering to provide a free rental analysis. This is a chance for you to seek reliable information from industry experts. They can provide an accurate assessment of your Jacksonville property and set the right rental charge.
Price Adjustment Should Rest on Amenities
New landlords may have a difficult time assigning rent prices for their Jacksonville rental units. They may even assign a flat rate for the apartment rooms. This is not a good practice since individual rental units have different features.
Doing so would also reduce your profits since you’re not able to optimize your earnings. Setting the rent rate should be based on the following:
It’s common knowledge that great views are more desirable so units that offer them can have a higher rent price tag.
The property size of your Jacksonville rental matters. The bigger the square footage, the more you can charge for the rent. More space is always favored by tenants.
The more features you can offer such as outdoor spaces, a parking garage, or a balcony, the higher you can price your rental home. Extra features can be major selling points when marketing your rental home and renters are willing to pay more to enjoy those features.
The higher your rental unit is located, the more in demand it will be. Usually, units on higher floors provide the tenants with more privacy. Thus, most are willing to pay extra for the privilege. The only exception to this is if you have a walk-up unit.
Profits Result from Proper Rent Pricing
Review your rental earnings. It should be sufficient enough to cover your operating costs, maintenance expenses, repair charges, and mortgage payments if you have one. Once everything is deducted, you should end up with reasonable returns from running your Jacksonville rental home.
Though loan payments may eat up a portion of your profit, after some time, you should be able to receive a good income. You should also be able to enjoy some tax benefits. Otherwise, the rent price you’ve set may not be the right amount or you may have over-invested in your Jacksonville rental property.
Demand for Property Viewings
If you’ve noticed a spike in property showing requests then you may have gotten the rent price right. If not, this can indicate that your rental rate is off the mark and may be too high. This can discourage potential renters.
Adjusting Prices According to Market Demand
When you own a Jacksonville rental home, rent prices can change depending on market conditions. Landlords should always be ready to analyze the market demand and adjust the rental rate in response.
If you’re not able to make rental price changes when the economy is in an upturn, you lose the opportunity to earn more from your rental property.
On the other hand, if you avoid lowering rent rates during an economic downturn, you’ll risk tenant turnovers since people will be looking to live somewhere cheaper. Remember that vacant units are more expensive to maintain.
It’s advisable then to always be aware of market movements so you can adjust the rent rates and maximize your rental returns.
Pricing your rental home correctly is essential when looking to maximize your ROI while also attracting quality tenants. If you would like help setting the price or managing your property altogether, reach out to the experts at Gifford Properties & Management today!