Knowing how to price your apartment correctly is vital in San Diego's volatile rental market. Pricing it too low or too high may cost you more than just rental income.
To help you get a suitable rental income, we've rounded up everything you need about rental property pricing. Below, we talk you through some factors that go into pricing an apartment so that you can ensure yours isn't too high or too low.
So read on!
Define Your Target Market
One of the first things you should do when pricing your apartment is to define your target market. Is your apartment more affordable, made for families, or does it cater to an age group?
Consider the size of your apartment and if it would be best for a young professional, a family, or roommates, for example. These different markets may have different needs and budgets. This will help you price your apartment affordably and ensure you get the profit you need.
Research Current Rents in Your Area
The first step in determining the correct rent for your apartment is to research current rents in your area. An excellent place to start is by looking at the median rent for similar properties in San Diego County, or even just the average rent. You can also look at what other landlords ask for similar properties in other areas or nearby neighborhoods.
Once you have a general idea of how much others are charging, try putting together a spreadsheet with all this information and see where yours falls compared to theirs. This is also something your experienced property management team can help with.
Consider Your Amenities and Features
Amenities and features can be a big selling point for your rental apartment, but they can also be expensive. So make sure you don't overdo it. For example, if you offer high-speed internet access in every room of your property, that's a great perk, but you'll want to factor in the expense when calculating the rental price.
Community amenities such as gyms, pools, and pet areas will demand a higher rent. The features of your apartment will also play a role in the price. A three-bedroom will cost more than a studio, for example.
Map Out Your Expenses
You need to know how much money you will need to stay afloat as a landlord and make enough to cover future repairs or replacements, taxes, and other expenses. First, create a list of potential costs. These include everything from mortgage payments, repairs, replacements, and taxes.
You'll also need to consider other expenses for your rental business, such as apartment listing services and paying accounting professionals. While some of these repairs are unexpected, keeping a good emergency fund on hand will help.
Price Your Rental Apartment Right
To price your rental apartment right, get a good sense of what other properties in the area are charging. Then, ensure you have considered all the costs associated with operating an apartment in addition to the market to get the right price.
If you're ready to get professional help maintaining your property, leasing, and pricing it, you've come to the right place. Fill out the contact form here to contact a property management expert.
