Setting a Rental Price for Your Phoenix, Arizona Investment Property: Landlord Education
PRS Property Management has a wide range of experiences servicing the Phoenix area including Tempe, Chandler, Ahwatukee, Mesa, Gilbert & Queen Creek. There are different ways to determine the amount of rent to ask for your rental property. Setting the rental value can be a tricky process with many factors to consider. Even when rent has been carefully derived by the property manager, it’s still subject to change if that amount is rejected by prospective tenants. Ultimately, the tenant population sets the rental values. There is one major underlying actor that determines rent: supply and demand. Generally, if supply is low, demand will be higher, resulting in increased rents. Or, conversely if supply is high, demand will be lower, resulting in lower rents. It’s always necessary to use comparable properties that are currently on the rental market. This usually means searching out properties with similar size, amenities and neighborhoods. There are a few specific items to consider when you are setting a rental price. Those are the age of the house, the square footage, the lot size, the number of bedrooms and bathrooms, whether there is a swimming pool, any included appliances and the type of vehicle parking that is available. Remove your emotions when you’re renting out a property. For example, if the property has been used as your personal residence, those fond memories you have of the home can distort the true picture of the rental value. It does not pay to sit on an empty property with the attitude that you’d prefer to hold out for a higher rent. If you run the numbers, you’ll see that long vacancies create more financial damage than adjusting the price and renting the property within the lease amount of time possible. Work with the rental market to set realistic rents and the end result will be quickly achieved success and securing new residents. If you have any questions about pricing your rental home, please contact us at PRS Property Management, and we’d be happy to give you more information.
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