Pricing Is Everything
There are a few things that can motivate you when deciding to rent out your furnished or unfurnished property. Perhaps you’re moving away for a period of time, perhaps you own a property that you don’t live in that often or maybe you have decided to invest in real estate with specific intent. In the end, it’s the desire to get the most out of a property and start seeing a monetary return that will push you to action when renting your property. And of course, when you think of what you would ideally earn from a monthly rental, real estate owners tend to let their fantasies run wild and think of a price that might not be realistic.
Pricing is one of those things that can make or break a rental. You could be offering the best quality of living with top notch features in your rental but if you don’t price it according to the current rental market, you won’t get the type of response you deserve. Everything you offer adds value to your rental from utilities and parking to the features of the property and the location. However there are many things that can take away value as well, such as not being close to transit, difficult terms and any restrictions. Taking all these details into account in addition to the fluctuations of the real estate market, it becomes tricky to put an actual numerical value on your rental.
If you price your rental too low, you are not getting the most value possible out of your rental. You may also find that you are not getting the attention of the right type of tenants. However, pricing a rental too low is a rare problem in this industry. Pricing your rental too high is much more common and comes with equally troubling issues.
Some owners might think that the worst that could come from pricing your rental too high is that you simply don’t attract any tenants. Yes, vacancy is a huge issue with overpriced rentals and this affects property owners in a huge way. If you stick with a high price for a month and see no action, there’s a month’s rent gone out the window! However, overpriced units also attract the wrong type of tenants.
We’ve seen it many times before, a tenant with a troublesome record or bad intentions will look for overpriced units because they know that these owners will ask less questions. These tenants have already been rejected from other units because owners who receive multiple tenant applications can actually look into their tenants without the pressure of vacancy hovering over their heads. Think about it, if you’re sticking to a high price and you’ve gone vacant for 3 months, when that tenant comes along who is willing to pay your price you might just be desperate enough to take them on with few questions asked. We won’t even begin to tell you about the issues a bad tenant can cause. It’s a nightmare!
In the end, what you think you’re rental is worth may not be spot on thanks to the real estate market and all the little details that affect your rental. That is why at Rent It Furnished we help you market your rental at the perfect price for FREE! Our expertise in the rental industry allows us to take all of the facts into consideration and come up with a price that will get you some action on your furnished or unfurnished rental. Avoid all the extra stress of over pricing or under-pricing your unit, our expert marketing team can do the work for you at no cost. Contact us so we may send one of our specialized leasing agents to assess your property and help you market your rental in Vancouver, Toronto and New York!
Written by Kirsti Heitz