In the last few years, people have noticed that rents have gone up for Vancouver rental property. In southwest Washington, rents have gone up about 30 percent since 2011. There’s something very important you have to understand about setting the best rental price for your home.
Please keep in mind when you set the rental price that you cannot base it on your own personal costs. Expenses like your mortgage, taxes, insurance, upkeep, and property management don’t really matter. The market value determines the rent rate, not your financial obligations. If your house rents for $1,500 a month but your costs are $1,800, you cannot try to ask for that $1,800 when the market will only bring you $1,500.
When you price your property too high, the house will sit empty and after a couple of months, you’ll finally lower the price to $1,500 anyway. But, while you were waiting for a tenant willing to pay the higher price, you lost at least two months of rental income. That’s $3,000 you’ll never earn back. The rent must be consistent with the market value or people will go elsewhere. Today, rent prices are easy to find online, so savvy tenants will go to the web and determine the rent price for the house you’re renting.
If a home will need repairs, that can hurt you on rental value. You’ll get low ball offers or unqualified tenants. Go through and give the property a coat of fresh paint, replace carpet or improve flooring, and make sure you’re paying attention to curb appeal. So from the street to the front door, make sure the house looks good. That helps to get you the highest rent.
For more information on pricing your rental or anything pertaining to Vancouver property management, please contact us at SunWorld Group Property Management. We’d be happy to tell you more about investing in Vancouver.