As you’re deciding what to list your El Paso rental property for, remember that the local rental market drives your rental value. When you’re calculating a monthly rent, you want to make sure you’re setting yourself up to earn as much as possible in rent every month. But, you don’t want to price the home so high that you’re left with a vacant property no one wants to rent.
Today, we’re using our experience as an experienced
El Paso property management company to talk about rents and how you can determine what your property is worth. Accessing reliable data is extremely important in attaching a rental price to your property, so get some help from professionals when you need a comparative market analysis. That’s our best advice.
If you’re like most landlords and investors, you’re expecting to earn enough in rent to cover the property’s mortgage and other expenses, and maybe even earn some extra cash every month. This is certainly possible, depending on your loan payments and the properties in your portfolio. But, the price you place on your rental will depend on what’s going on in the
rental market, and whether there’s a demand for homes like yours.
Before you price your property, take a look at the market. If there’s a lot of competition and a large numbers of homes like yours, you’ll need to be more competitive in your pricing. If the market is tight and it’s hard to find a home as well-maintained and well-located as yours is, you can probably ask a little bit more.
The strength of the current rental market is really what’s going to drive your price. This can be a source of frustration to owners, especially if you want to earn a specific amount. But, you have to strategically calculate your rental amount and not arbitrarily put a rental price on your home based on what you’re hoping to earn. It’s essential to know the market and how it’s performing.
Conduct a comparable market analysis, which will tell you what homes similar to yours are renting for in the neighborhood. You need good and recent data to price your property effectively.
Calculating your property’s rental value needs to include its location. If you are renting out a single-family home in a great neighborhood with a good school system or a new construction condo in a walkable area, you’re going to be able to charge a lot more than you could if your property was in a less desirable zip code without access to good schools, commuter routes, and recreation. More remote properties will usually rent for less.
Property condition is one thing that you can actually control when you’re establishing a rental price. You’ll want to use this to your advantage and make sure you’re maximizing your rental value by offering a clean, attractive, and inviting home.
When you allow your property to look worn and run down, you’re losing monthly rent money. Keep it well-maintained, and make some strategic upgrades and updates. You’ll be able to charge more in rent when you provide improvements such as:
These minor investments will not only raise your rent; they’ll also attract better tenants.
We’re experts in pricing rental properties. If you have any questions while you’re pricing your home or you’d like some support with El Paso property management, please contact our team at Century 21 Haggerty Property Management.
propertymanager@haggertycompany.com
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