Pricing your Grand Rapids rental property is a balance between earning as much as you can every month and remaining competitive in a crowded market. Your goal needs to be keeping vacancy rates low and attracting high-quality tenants.
You don’t want to under-value your investment. But, asking for more rent than the market will bear is going to lead to longer and more expensive vacancy times, and that will cost you money. Well-qualified tenants will never overpay for a property.
Today, we’re talking about how to establish a rental value in Grand Rapids.
Get to Know the Grand Rapids Rental Market
Remember that the market is going to have the largest impact on the price of your rental property.
The market does not care about your cash flow or how much money you want to earn every month. You may have an idea of what your property is worth, but that doesn’t matter as much as the strength of the rental market and the local real estate industry as a whole. If the amount of rent you can earn makes you feel like you’re losing money on your investment, you’ll have to wait for the market to improve or make some creative moves with your financing or some upgrades.
Your rental property will only rent for what the market demands. Consider this before you buy an investment property in Grand Rapids and when you’re preparing to attach a rental value to the home.
Grand Rapids Rental Property Location
Location is a driving factor in real estate prices, whether you are selling a home or renting one out. When your property is in a great neighborhood with good schools and easy commuter routes, you’ll be in a comfortable position to ask for more in rent than if your property is more remote and not close to conveniences like grocery stores and major roadways.
Condition is a Factor Owners Can Control
You can’t control the market and once you own the property, there’s not much you can do about its location. But, you have a good amount of influence over the condition of your home. This is where you can make an impact on what you charge for rent.
Well-maintained homes with lots of curb appeal and modern updates will rent for more than older properties that are worn down. Make a few inexpensive upgrades to your property to help it rent for more. Simple things like a fresh coat of paint, colorful flowers, or shiny new hardware on drawers and cabinets can make a big difference.
Conduct a Comparable Rental Analysis
Before you price your own rental property, you need to know what similar properties are renting for. This is called a comparable market analysis, or a rental analysis, and you can find a local Grand Rapids property management company to run one for you if you don’t have access to reliable data. You can find some information on sites like Zillow and Trulia, but there’s a big difference in what a property is listed for and what it actually rents for.
Working with professional Grand Rapids property managers can help you get an accurate rental price. You’ll have access to local experts and up-to-date market reports. When you work with our team, we make sure you’re not overspending on acquisitions. We help you estimate what you’ll earn in rent before you even buy.
If you would like to talk about how we can help you as a Grand Rapids property management resource, please don’t hesitate to contact us at Short South Realty Group.