As a rental property owner or investor in Central Florida, setting the correct rent for your property is crucial to leasing your home fast and for top dollar. Determining your rental comes down to a straightforward principle, the Law of Supply and Demand. Meaning for us, If there are multiple rental’s available in the area of your property with a similar makeup, it is necessary to be very competitive with your pricing. If there are very few properties for rent in your area, it can make it easier to rent the property.
There are many different tools out there for you to fiddle with to get an idea of the rental rate. For example, you have Rent-o-meter, Rent Range, Zilpy, RentBits, RENTCafé or even your trusty Rent Zestimate ;). These are great tools for property owners and investors purchasing out of state-properties or if you are just not sure what is going on in your area, but keep in mind these tools are not the end all, tell all solution for determining your rental price.
These platforms will give you a great idea and starting point, but we have seen first-hand investors hedging on those rates, and the investment doesn’t perform up to those standards. It’s imperative to consult with a reputable local professional property management company. They look at rental properties daily and can give you a more accurate rental rate for your property.
Pulling comparing properties is more of an art than a science. Not only do you need to consider upgrades, location, amenities, utilities included, and overall property condition. You’ll also need to consider the proximity those comparables are to your property. In Florida, you go .25 miles east, west, north or south of the subdivision. Your target demographic and property types can change drastically and ultimately reflect in your rental asking price.
How Long Will The Property Sit Vacant?
This is one of the most frequently asked questions from rental property owners. Setting an accurate rental price affects the amount of time your property will sit unoccupied. Unfortunately, there is no way to predict precisely how long a property will sit on the market. But if a home is accurately priced and the property condition is move in ready. We are seeing homes in the Greater Orlando area lease in under 30 days. The Listing Real Estate Management, Orlando property managers work diligently to rent out properties quickly, but the main objective is to have a “Quality Tenant” and not just any tenant.
You, The Listing Real Estate Management, or frankly any other property management company, can rent properties “quickly” if they do not have standards for obtaining a good tenancy. If we wanted we could have someone move into your rental property tomorrow with the amount of traffic generated for your home.
However, placing bad tenants will only create more expense and another unwanted vacancy; therefore, waiting for the “right tenant” is worth the additional time & cost it can take to rent the property.
The $50 to $100 Rental Price Difference.
As a property management provider, our goal is to produce the most amount of cash flow for your property. Overpricing a home by $50 and not budgeting on a reduction by $50 to $100 can have a harmful effect on your balance sheet. For example, let say you list your rental property at $1,250/mth. After a week or two on the market and several showings, your home does not receive an application. You don’t adjust down, and your home sits for another 25 days, putting you well over a month of vacancy.
The additional $50 over 12 months adds up to $600 a year of extra income. However, you’ve missed out on an entire month's rent ($1,200) during the vacancy, so you are at a loss.
At The Listing Real Estate Management, we continuously strive to maximize the profit for your rental property, we re-evaluate your rent price every 60 to 90 days prior to every lease expiration or renewal. Conservatively you can expect a 3% increase in your rental rate year-over-year.
If you have any questions or concerns regarding your Central Florida rental property and rate. The Listing would love to provide you free rental analysis & property review consultation, please feel free to contact us at The Listing Real Estate Management, the top choice for Property Management in Orlando Florida.