Investments in a rental property could be financially rewarding. If you're thinking about investing in this type of property, be aware of the risks and requirements.
Pricing your rental property effectively is crucial to ensuring the success of your real estate investment. Overpricing your rental unit as a landlord is risky since it scares away potential tenants. On the other hand, underpricing is no better because it means you're losing out on money.
The focus of this post will be on how to price and market your Phoenix property for rent.
How Do You Price Your Phoenix Home?
No matter how much experience you have, figuring out how to price your Phoenix rental property can be difficult. The Phoenix property market is hot, whether you're a buyer or a seller. The neighborhood is also loaded with rent potential.
In order to capitalize on the rental housing demands in the areas though, you need to price your properties correctly. Here are some things you should be doing:
Compare Your Home to Similar ones in the Area
It would be wise to study normal rent rates in the same way your potential tenants will. After all, no one wants to overpay for a comparable property if they can find a better deal elsewhere.
Even if you think you know how much your Phoenix rental is worth, you should double-check by looking at other listings in the neighborhood. Be careful to examine factors like square footage, amenities, layout, and the number of bedrooms and bathrooms when you do so. Don't forget about the extra amenities like parking, landscaping, and in-unit laundry.
Knowing how much surrounding rentals are going for and what they offer potential tenants will help you set the right price for your property. This can also help you, secure long-term tenants, for your rental units.
Take into Account Your Amenities
If you want to raise and collect more rent for your Phoenix property, you'll have to go above and beyond what similar rentals offer. Nowadays, tenants expect more facilities and these are the things you should highlight in your units listings and ads.
Tenants are looking for things like energy-efficient utilities, amazing natural lighting, an indoor gym, good views, improved flooring, and more. Fortunately, any improvements you make to your rental home can potentially increase your rent amount.
The challenge is in determining which renovations will have the most financial impact can be difficult. That is why contacting a local property management company for a rental evaluation of your property might be beneficial.
Examine the Location
As a landlord in Phoenix, you've probably heard that location is one of the most crucial factors to consider when purchasing an investment property. It's also one of the most significant elements to consider when determining how much to rent out your property for.
Suppose your property is in a desirable area with local restaurants, shopping, entertainment hotspots, schools, and workplaces. In that case, you may be able to charge a higher rent rate. People are always looking for a place to call home in regions where they can get everything they require within walking distance.
However, if your Arizona house is located on the outskirts of town, setting a high rent rate may be more difficult if you want to attract residents.
Understand Market Demand
The property market is affected by the forces of supply and demand. It’s recommended that landlords constantly adjust their rental prices in accordance with market conditions.
For example, during times of economic hardship, it might be prudent to lower your rental prices, instead of having a vacant unit. After all, vacant units still cost landlords money, but without the benefit of generating any passive income.
Examine Your Pet Policy
Pets are owned by a significant percentage of tenants. You could be losing money if you don't currently accept pets in your rental space. When it comes to deciding on a rent cost for your Phoenix property, little details like allowing pets can have a major impact on how much you can ask for.
Allowing pets also mean you may be able to charge a monthly pet fee, which would let you earn more money than if you didn't accept pets at all. Note, however, that any pet policies and fees cannot apply to someone who has a service animal as this would violate the Fair Housing Act.
Contact a Phoenix Property Management Firm
If you're always asking yourself how much you can rent your house out for, it's time to hire a professional Phoenix property manager.
We, at Taylor Street Property Management can assist you in choosing the proper rent price by considering numerous factors including current market rates, location, demographics, lease provisions, and even in-demand amenities.
With the support of a trained Phoenix property management firm, your rental property business will be blooming in no time.
Conclusion
When running a rental business it’s natural to want to maximize your profits. But in order to do so, you need to be able to set a competitive rental price that attracts long-term tenants.
If you would like help doing this, contact the experienced team at Taylor Street Property Management. We can manage everything from property marketing and tenant screenings to maintenance and financial reporting on your behalf! Contact us today to learn more about our services.
