Before you place your property on the market, you need to know how much you are going to put it up for rent. The price will determine the viability of your investment in Reno. Too low of a rental price and you won’t hit your target ROI or meet your financial obligations. High rental prices may chase tenants away, resulting in an increased tenant turnover.
Prior to establishing the rent amount there are several things that you should consider. Evolve Nevada has compiled a guided list of tips! Remember, the right rental price attracts and maintains a steady flow of tenants to your property, so you want to make sure you get the price just right.
Your property doesn’t exist in a vacuum. Your rental property may be located in a neighborhood with other options for potential renters to choose from. Comparables in your neighborhood can help you decide the amount of rent to charge for your rental property.
It goes without saying that you should search and select rentals that share certain attributes and characteristics with yours. In your search for comparables, consider the following:
- Location. The location of your comparables really matters. Preferably, look for comparables in the same neighborhood as they are being affected by the same local conditions, powers of supply and demand, as well as enjoy similar amenities.
- The number of bedrooms and bedrooms. In most cases, bedrooms and bathrooms are of a similar size in the neighborhood for the type of property you own. This allows you to make a like-for-like comparison.
- The age of construction. All buildings are subject to wear and tear. Potential tenants are usually willing to pay more for newer construction or property that is well-maintained.
- Single vs. multi-family homes. Single-family homes are able to demand a higher rental price due to often having outdoor spaces as well as having privacy.
So, where does one search for comparables? In these tech-driven times, you can easily find what you are looking for online. Rental sites like Trulia, Zillow and Hotpads can give you the comparable information that you’re looking for.
Another possible option is to ask for the services of a property management company like Evolve Nevada. Our experience and industry knowledge in the local property market will save time and give you the most accurate results.
Adjustments Depending on Amenities
To enjoy a steady supply of rent in the future, you may be tempted to set the same price for all one-bedroom units, two-bedroom units, and so on. We advise against this. The strategy may come to hurt your earnings as there are no two properties that are exactly the same.
You should charge differently, depending on the desirability and the amenities and renovations in the units. Rental units with hardwood floors, a dishwasher, and a new coat of paint should be priced higher.
There might be a unit with an excellent view of the street or a garden view. This is a more desirable unit and should command a higher rent. Another element that should be obvious is square footage. The bigger unit offers the tenant more space to maneuver in and, as a result, the tenant should be ready to pay more.
Housing is subjected to the powers of demand and supply. This is a turbulent flow that dips and soars at different times of the year. As a landlord, you should be ready to take advantage of this turbulence. Pricing your Reno rental property is not a one-time event.
There are times that housing demand is on the rise. Companies may be relocating to the city, leading to an increase in jobs and the moving of thousands of professionals and job seekers. With an increase in demand, it’s only prudent that you should review the rent upwards.
The reverse also applies. When the economy is bad, such as in a recession, people can no longer afford a certain lifestyle and may have to downgrade. There might be a reduced demand for bigger homes, like three or four-bedroom properties. Landlords may have to offer discounts to retain and attract their tenants.
Your Expenses and Costs
From our experience in Reno and the Northern Nevada property market, each investor has different goals when they choose to invest in property. But one thing unites them all: costs and expenses.
There are several costs and expenses to be met on a regular basis:
- Mortgage payments
- Maintenance and repairs
- Insurance premiums
- Professional fees (management or advertising fees)
- Vacancy costs
The rent amount should be able to cover all the expenses mentioned above and also allow for some profit.
Interest from Potential Renters
Are potential renters requesting to view your property? If the answer to this question is no, the rental price of your property could be chasing them away. In a competitive neighborhood, a potential renter may have several options to choose from.
If you want to stick to your higher-than-market rental price, your property must have the amenities to back it up.
Are you looking for a professional management company for your rental property in Reno? You will need one with the experience and resources to handle your property’s needs as well as those of your tenants. Rely on the premier property management company in Northern Nevada!
Evolve Nevada is known for the professional services offered by its expert staff. We customize our services for single-family homes, multi-family homes, condominiums, or commercial rental properties. With us as your property partner, you can be guaranteed 100% satisfaction! Reach out to us today to learn more about our services.