When you rent out your home, you have to price it correctly. Pricing is the number one factor in getting your property rented quickly and for the most amount of money. Ninety percent of any great marketing plan is pricing in the right range. Your price must be below the properties in your area that have more features to offer than your home. It’s also important to remember that the amount you rent for is ultimately decided by what a tenant is willing to pay for the property.
Determining the Rental Value of HomeMany people ask - what determines price when I rent my house? There are a number of factors that influence what you can price your rental property for, including location, market conditions, economic trends, condition of the property, market supply and demand, and what is going on with apartment and multifamily units in the area. We cannot control things like competition and market conditions. However, we can control your pricing strategy.
Price BracketingAt Miller Laine, we use a pricing strategy that’s called price bracketing. It sets the rental rates to meet the goal of renting your property as quickly as possible to the best tenants who are looking for a home. Most rental sites like Zillow and Trulia have a rental range or a scale that’s used to organize their listings. Most prospective tenants have a price range in mind before they start looking for properties. So in Seattle, for example, you might set your price at $2,995 per month. That’s a good strategy, because most people willing to pay that are looking for rentals in the $2,500 - $2,995 per month range. If you price the same home for more than $3,000, a number of tenants won’t even see your listing. That’s why price bracketing is so important.
We do everything we can to establish the true market price of your rental so we can be sure we’re pricing it correctly. If you have any questions about how to rent out your home or anything pertaining to Edmonds property management, please contact us at Miller Laine Property Management.