Competitively pricing your Santa Rosa rental property is going to do two important things for you. First, it’s going to attract high-quality tenants who are looking for value. Residents are more educated and tech-savvy than ever before. They’re going to know what properties are worth, and they’ll know when they’re getting a good deal. Second, a rental home that is priced competitively will reduce your vacancy time, ensuring you have rent coming in as quickly as possible.
Don’t make the mistake of overpricing your property. Here’s how to know what the right rental range is and how you should establish your competitive rental value.
Get to Know the Santa Rosa Rental Market
First, you have to know about your competition.
You can’t price your own investment home properly until you know what rental prices the Santa Rosa rental market is demanding. Look at the specific region your rental home is in. Maybe you’re renting out a home in Windsor or Sebastopol. The rental values in Petaluma may be dramatically different from those in Rohnert Park.
When you’re conducting an analysis of rental prices, get as close to your own neighborhood as you can. School districts, home values, and proximity to shopping, restaurants, and commuter routes will all impact how much you’re able to charge for your property.
Consider Your Unique Sonoma County Rental Property
Once you have an idea of what’s going on in the market, you can measure your specific rental property against the average rental home. If you are offering a property that’s in excellent condition, well-maintained, and full of modern updates such as hard surface flooring, stainless appliances, and smart home technology, you might be able to ask a little more than the average rent. On the other hand, if your property is aging but you’re not making updates and there aren’t any special selling points like outdoor space or private parking, you might have to lower your rental price a bit to find a tenant quickly.
How does your rental home fit within the competing rental homes? That’s what you’re looking at when you’re deciding what you can charge for your property.
Stay Flexible on the Rental Amount
Many owners will initially price their rental homes at the higher end of the range and then drop the price if they don’t get any interest after a week or two. This is one way to price and market your property, but we recommend you enter the market with a competitive rental price. This will attract the most tenants, and you won’t have to backtrack with the price later.
Don’t be afraid to price your home just a bit lower. If homes similar to yours in the same location are renting for $2,200, for example, consider listing yours for $2,175. That $25 per month isn’t the loss you worry it may be. If you get a tenant into the home right away, you’re going to earn a lot more money than you will be holding firm at the higher rental price but giving up a full month’s rent because of a longer vacancy.
We’re here to help you properly and competitively price your rental home. Contact us at Prestige Real Estate & Property Management. We’re your property management experts in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.