It’s been nothing but good news these past few years for landlords along the Front Range. Every quarter, we get good news that vacancy rates are down, prices are up and your rental properties are appreciating in value. It can’t get much better than that! However, in quick moving markets, it can be difficult determining fair market rents. Rental values listed on Zillow or Trulia, rumors of neighboring properties getting extremely high rents and newspaper articles discussing near-zero vacancy rates can tempt even seasoned landlords to price their properties higher than they initially should.
There are a few things to keep in mind when pricing your rental.
Experienced investors know how easy it can be to rent their property when they price it too low and how difficult it can be if it’s priced too high. We have found at Real Property Management Colorado that balancing rental rates, vacancy rates (days on market), and tenant qualifications are the keys to maximizing your rental property’s long-term value. Remember, sites like Zillow and Trulia only compile information on properties “listed for rent” prices . . . not the actual rental rates that the home finally rented for. There can be a substantial difference between asking price and the actual rental rate agreed upon by the landlord and the tenant. Unfortunately, these sites have no data on actual rental rates and typically report higher rental values based on asking prices.
If your property is nearing a renewal with your tenants or you’re adding an additional rental property to your portfolio, contact Brandi Bishop in our office to talk rental rates. She can provide you with “real rental data” from our large portfolio of rented homes to help you get the most out of your rental without putting your property at risk of sitting on the market for an unnecessary length of time.