Pricing your investment property in a range that fits all of your requirements takes time and care. There are many factors to consider when setting a price, such as neighborhood amenities, the quality of your property, and the cost of similar rentals in the area and changes in the local market.
According to Zillow’s Group Consumer Housing Trends Report 2019, renters are looking for homes or apartments that check the following boxes:
- Within initial budget:
- 85% of renters find it extremely or very important that their home is within their budget. If you price your rental too high, your place could sit unoccupied. Too low, and you run the risk of losing money on your investment. We’ll suggest a comfortable range that will make both you and your prospective tenants happy.
- Needs met for air conditioning, heat, utilities, and parking
- If you’re including gas, electric, water, trash removal in the rent price, we’ll help get an estimate of what those costs will be, and how you can include them in your price point.
- 37% of renters say that having parking is highly important. This is especially desirable during Maine winters when parking bans due to snow are common.
- Preferred number of bedrooms:
- It’s important to know how your property stacks up against other properties in the area that have similar amenities and the same number of bedrooms and bathrooms. The DOMAINE rental team will research competitors and suggest a price range that reflect the perks your property offers.
- Feeling safe in neighborhood
- 77% of renters said that living in a neighborhood that feels safe was highly important.
- Manageable commute to work or school
- 57% of renters say their commute to work or school influences their home choice.
- Walkable neighborhood
- Aside from the property itself, a home’s rent price can be increased by the neighborhood it’s in and the conveniences around it. DOMAINE’s team has extensive neighborhood experience to help decipher what factors may influence this increase.
Remember that your rental price typically changes in response to Greater Portland’s market conditions and your competition. It’s ultimately up to you and your DOMAINE agent what to decide on what to charge and whether to increase (or decrease) rates at the time of listing or renewing. Once we’ve settled on a fair market price, we’ll talk ideal tenants characteristics , explore market strategies, and connect you with qualified renters.
Valuing your property is the first step in making your investment property work for you. We’d love to connect with you and talk through the ways we can help.
