One of the most discussed topics when meeting with owners about their property is the rental amount. There are many different ways to determine the rental amount of your home. The first and the most important is what you have probably heard at some point in your life which is location, location, location! This is very important and it is where we begin to form an idea of what your property might rent for. Some think that it may be as simple as an entire city but it really is more specific than that. When we look at location we focus not just on the city but down to the neighborhood where the home is located.
Next, we focus on what that neighborhood has as it pertains to amenities (pool, sidewalks, playground, storage area, tennis courts, basketball courts) an assess the condition of them. These are amenities that most tenants want to know about and the value it brings as it corresponds to the rental amount. A pool has a lot of added value for tenants because it gives them a way for their family or themselves to have recreation at their finger tips. Some tenants like to idea of having sidewalks so they can walk or run for exercise or to just enjoy the outdoors.
Lastly, we look at the age of the home, square footage and building materials used (granite, hardwood floors, crown molding, tile, fixtures) and how that may increase the value for our potential tenants. The age of the home is very important to tenants because they are going to want a home that is energy efficient and aren’t going to want items like HVAC to be constantly serviced. Having a home that is updated even though it may be older is very important for your rental amount and also to secure tenants that will take care of your home. Next, everyone wants more room and obviously square footage has a big impact on rental amount along with the amount of bedrooms the home may have. This part is pretty simple, the more room and rooms you have the more the rent can go up. Some of the more important materials that need to be in a home to maximize your investment is granite vinyl plank or hardwood floors. The main point that we tell our clients is to get rid of the carpet and put down solid flooring.
This is not a comprehensive way to evaluate your rental price but these steps will put you on your way to getting a very close estimate for your home. We are always willing to help in anyway we can so if you have any questions please let us know.
