What Makes One House Rent Faster or For More Money Than Another?
When a new vacant property comes under management we conduct a complete rental analysis in order to establish a rent range for advertising the property.
Just as in home sales, establishing a fair market rent is not an exact science. Many factors are taken into consideration such as current rental demand, current available rentals, neighborhood, age of the property, desirability of the floor plan, curb appeal, desirability of the interior finishes, fixtures and fittings. We also reference local vacancy reports and average rents as well as spend time online researching the competition, and other factors besides. The work we put into preparing a rental analysis is really no different from the research a real estate agent might perform in order to price a house for sale. The big difference is that sold prices are usually public knowledge and a large database can be accessed for reference through the MLS, whereas the price that a property rents for is not recorded anywhere that is accessible to the public, and therefore we only have current “asking rent” to guide us.
I am often asked by clients if an extra garage will bring more rent. Or a bonus room, or larger square foot. The answer is usually “it depends”. A third garage will only add value to a 3-bedroom home if the prospective tenant has need of an extra bay. A bonus room is only valuable to someone who wants one, not everyone does. So a prospective tenant may not be prepared to pay more for the bonus items, like a bonus room or extra garage, but it will most likely cause your house to rent more quickly than the competition. And a fast tenant turn results in more income, even though the actual monthly rent is not any more. Consider, if a house that rents for $1,200/mo. rents one month sooner than it’s competitor, that’s the equivalent to an extra $100/mo. in rent over 12 months.
Unlike home sales, where price is often calculated by square foot, with rentals price is more commonly calculated by number of bedrooms. A 1,500 sqft 3-bedroom house will not rent for as much as a 1,500sqft 4-bedroom house, all else being equal. Particularly small or large homes are difficult to price, because they cater to a niche market. Executive level homes with superior fixtures/finishes, because of their perceived value, draw from a smaller tenant pool, and therefore can take longer to rent.
If you would like to learn about our pricing and marketing strategy, please read last May’s Owner newsletter.
Thank you for your response to our 2018 Optional Suggested Services.
These are the services coming up in the Spring:
- Roof Inspections
- Spring clean-up
- Lawn Care
- HVAC service
Summer services will include: Dryer Vent cleaning, Power Washing, Crawl Space and Attic inspections.
Fall services will include: Gutter cleaning, fall landcape clean-up, fall lawn care, hot water heater service.
The detailed property inspections will be conducted in coordination with annual surveys as they come due
If you wish to elect to have one of more of these servcies for your property, and have not already submitted the Optional Services Survey form, please contact Spencer Henderson: firstname.lastname@example.org
There are no special accounting events happening in March.
If you ever have questions about your statement, please contact Karen@rentalsinboise.com.
Our March Tenant Newsletter reviews our satellite services installation policy. To protect our owner’s investment properties, all installations for satellite services of - TV, phone and Internet must be directed through our authorized vendor so as to ensure intallations are conducted to our standards.
Our business feature is on a local moving company Caseboise. Caseboise offers Treasure Valley moving services at an affordable price that, after calculating all the added costs of a national “rent a truck” company, can be a better alternative.
What Are You Interested In?
This newsletter is intended as a resource and communication platform for you. If there is a topic, relevant to the management of your investment property, that you would like me to write on, please let me know!