Pricing is a huge factor to consider when you’re planning to rent out your Denton rental property.
It’s optimal to ensure profit and good returns on your real estate investment. If you just break even or end up with a loss after paying off your operational expenses, then you need to do a pricing adjustment.
On the flip side, if your rental rate is too high, you can end up with a vacant unit. This can leave your property at risk and your maintenance fees rising without any earnings to fall back on. The best strategy to adopt is researching the rental rates of the competitors around you.
Pricing your home should be based on the following:
1. Neighborhood
It’s easy and logical to assess similar rental properties in your own Denton neighborhood.
This gives you a more accurate pricing gauge rather than choosing random neighborhoods since some areas can be heavily in demand due to their reputation for premier rental units.
Different neighborhoods also offer a variety of amenities like being near a park, transportation hub, shopping centers, and schools.
2. Number of Bedrooms and Bathrooms
The more rooms your Denton rental home has, the more occupants it can welcome. It’s the number one reason that larger-sized rental properties with several bedrooms and bathrooms tend to be priced higher.
3. Property Type
With a single-family Denton rental home, residents can enjoy more privacy and won’t have to share common amenities or entrances.
That’s why landlords can generally assign a higher rental fee for this type of rental unit, compared to multi-family units where walls and utilities can be shared among the tenants.
4. Age of Construction
If your Denton rental home is new, you’re certain to attract more potential tenants. It’s convenient to stay in a rental unit where home systems and appliances are new and energy-efficient.
Things will typically run smoothly and there will be no need to report any property damage issues. Residents won’t also be dealing with items that have wear and tear. That’s why landlords can give a higher rental fee for newly constructed units.
What Are the Reliable Sources to Look for Rental Price Setting?
Here are some sources you can consider:
- In-Person Meetups: You can book a property tour to direct your questions to a landlord who owns a unit similar to your Denton rental home. It provides you with real-time information and you can also determine from the answers provided whether the demand is high in consideration of the rental fee.
- Online Ads: If you don’t have time to visit rental units physically, then another alternative is checking property listing sites. Narrow down a couple of rental units in Denton and monitor which ones are immediately occupied. Identify those that have been vacant for some time and whether rental prices have gone down.
- Property Management Company: An expert at assigning rental rates accurately are property management companies since they’re exposed to the industry and have more experience. In fact, a lot of them offer a free rent analysis that you may want to take advantage of.
How to Set the Rental Rate Based on Amenities
It’s true that assigning uniform prices for your Denton rental units would be more efficient, but this can also mean leaving money on the table.
Study the features of each property and then set the rental rate according to the amenities it provides for the renters to enjoy.
The following are factors to weigh in when setting the rental fee:
- Views: Assign a higher rental fee if your rental space offers scenic vistas, such as nature.
- Renovations: If you’ve done property upgrades to your Denton rental home, then you can set a rental rate increase for making it more comfortable, attractive, and functional.
- Size: The larger the rental unit then the higher the rent fee you can command.
- Floor Level: Most tenants price rental units situated on a higher floor, so you can assign a higher rental rate if your Denton rental home is located at a top floor level, given that you’re offering more privacy to the residents.
- Extra Spaces: Another coveted feature are outdoor spaces. If your property offers a patio: If your renters own cars, then they want a safe parking space to protect their personal vehicles. If you offer this top amenity then you can set a higher rental fee.
- Furniture: Some tenants prefer furnished rentals, particularly those looking for monthly leases or one year leases.
How the Optimal Rent Rate Leads to Extra Profits
If you have an accurate rental rate then you can meet the operational expenses of your Denton rental home. If you need to deep clean the unit, then you can pay for cleaning fees.
If there are damages, you can also schedule renovations. This means your property will be always well-maintained and offers value to the renters, motivating them to be long-term tenants. This means stable earnings for you. If you’re barely making a profit, it can signify you are overinvested.
What Should You Do Before Assigning the Rent Price?
It’s a given that you’ll be making rental price adjustments to your Denton rental home from time to time.
Take into account new developments in your area, the state of the economy, and the peak and off-peak seasons if your unit is a short-term rental. Always check the rental demand when you’re setting your rental price.
Bottom Line
Reviewing the list of factors detailed above can make it easy for you to set an accurate rental rate for your Denton rental home. It’s also beneficial to perform comparative studies with similar rentals to help you assign the optimal price.
Are you seeking a reliable property manager to market your Denton rental property? If yes, contact Legacy Realty and Management today! You can enjoy quality rental property services from property maintenance and inspections to tenant screening and rent collection.
