Use the Comparison Method in Rent Price Setting

Always look at the competition to help you evaluate the accuracy of pricing your Jacksonville home. See those that are similar to your own specifications in terms of property features and amenities.

Look Around Your Neighborhood

Do you spot similar properties within your area? Check the property prices. The nearer to your rental unit, the better. Some neighborhoods are geared towards higher or lower-income tenants. The rental prices will not always be the same as yours.

Pay Attention to the Number of Bathrooms and Bedrooms

Property size is important when comparing properties. Your benchmark for comparison should be properties that have the same quantity of rooms like yours.

Contrast Similar Property Types

Basing your rental fee on a single-family home when you own a multi-family unit doesn’t make sense.

Single-family homes obtain higher rent charges given that it provides more privacy for the renters.

Consider the Property’s Age When Doing a Comparison

Newly constructed buildings often fetch better rental prices given that the amenities and home systems are newer. Older units tend to show more wear and tear and undergo multiple repairs.

Sourcing for Comparison Models

As a property owner, there are several ways to derive sources for comparison. You can start with:

• Researching Online for Ads: with a quick scroll, you can easily find information on popular rental sites such as Trulia, Craigslist, Zillow and Apartments.com. You can focus on a few marketed properties and monitor which ones have been occupied right away. You can also track properties where rental prices have been reduced and those that are still waiting for new renters
• Personal Visits: for a chance to ask questions face-to-face with property owners, you can also schedule a property showing. This makes it easy to compare the property features personally. After the visit, you will be aware of the level of interest in the rental unit
• Property Management Companies’ Assessment: most property management companies are open to giving out a free rental analysis. You can take this opportunity to gain expert opinions on accurate rental pricing. Given that they are handling rental properties day in and day out, their feedback holds greater weight
  

Property management companies can easily determine what you offer to prospective renters compared with other rental units. Contact Innovative Property Solutions today for an expert rental analysis!

Price Adjustment Based on Amenities

In an attempt to simplify the rental price setting for your Jacksonville rental home, you might use a uniform price for all units. This isn’t recommended, given that each rental unit will have marked differences. It pays to maximize returns by diversifying the rental rate based on the attractive features of your rental property.

Rent setting can be established on the following grounds:

• What’s the Property’s View Like? The lovelier the views outside the rental, the higher the rate should be. People appreciate looking out into an oceanfront scene rather than a brick wall
• Are There Property Upgrades? Is your unit furnished with newer and better fixtures? If one can spot granite countertops and stainless steel finishes for appliances, then the rental can be priced higher
• What’s the Rental’s Size? The bigger the square footage, the more you can increase the rental charge. More space is preferable for renters
• What Property Features Are Displayed? Extra outdoor spaces are appreciated, so having a balcony, patio or veranda in your property is desirable. You can then price your rent fee above the average unit that lacks those features
• On Which Floor Level Is the Property Located? Generally, renters desire rental units located on higher floors. This can mean more privacy and better views. Higher floors can be assigned higher rental rates
  

Accurate Rent Pricing Produces Profits

No matter what your financial goals are, at the end of the day, you must be able to pay off the maintenance costs of running your rental. Repairs and mortgage payments are also counted as expenses.

Besides this, you should be able to earn returns from your Jacksonville property, whether it’s reducing your mortgage loans in due time or getting rewarded with tax benefits. If not, one may have assigned the wrong rent amount or over-invested.

The Demand of Property Viewings

Check if more prospective tenants have been signing up for a property showing. If there are few, then it can be concluded that the rental charge may be set too high. When this occurs, it can turn off potential tenants. Your Jacksonville rental must be able to justify the rental price with an excellent location or top amenities so tenants’ interest will be stirred.

Market Demand as Pricing Determinant

Constant pricing adjustment is the core of a landlord’s responsibility. Rent prices inevitably change given that the market is dynamic. You must be able to gauge the demand and match it with your rental rate.

Supposing the neighborhoods near your Jacksonville rental undergo gentrification. More prospective tenants will be inspired to move to your area. Would you rather maintain your rent price? The smart move would be to increase the rent and maximize the opportunity of being in a hot location.

If the opposite happens, such as experiencing a weaker economy, then reducing your rental rate is better. Avoid bearing the costs of a property vacancy. Remain sensitive to the fluctuations of demand and supply and you’ll always be assured of gaining profits from your Jacksonville rental home.

Bottom Line

If you need any help finding the optimal rental price for your Jacksonville property, contact Innovative Property Solutions today! We have top-of-the-line property management services that can offer a great boost to your real estate investment.