Landlords who are trying to decide what they should charge for rent need to consider several things. The first is the market, over which we have no control. Rental values are driven by the current real estate market and the amount that tenants are willing to pay. You may have the most desirable property in Champaign-Urbana, but if it’s priced too high, no one will want to rent it.
Today, we’re using our experience as a local property management company to talk about rents and how you can determine property value. Data is extremely important in attaching a rental price to your property, so reach out to your Champaign-Urbana property management company for help with a comparative market analysis. Working with an expert in the field is our best advice.
Understanding the Local Rental Market
Most of the rental property owners we work with are hoping to earn enough in rent to cover the property’s mortgage and other expenses, and ideally earn some extra cash every month. This is certainly possible, depending on your loan payments and the properties in your portfolio. But, the price you place on your rental will depend on what’s going on in the rental market, and whether there’s a demand for apartments like yours. The requirements and demands of tenants often change, and today those tenants are more educated than ever. Qualified renters won’t be willing to pay more than the market dictates.
Before you price your property, make sure you take a look at the current market. If there’s a lot of competition and renters can find properties just like yours throughout the area, you’ll need to be more competitive in your pricing. If the market is tight and it’s hard to find an apartment as well-maintained and well-located as yours, you can probably ask a little bit more.
Location Has an Impact on Pricing
Your property’s location will also influence its price and needs to be considered. If you are renting out a property in a great neighborhood with a good school system, you’re going to be able to charge a lot more than you could if your property was in a less desirable zip code without access to good schools, commuter routes, and access to shopping and recreation. More remote properties will usually rent for less. In Champaign-Urbana, the University of Illinois campus is a very desirable location and its boundaries are expanding every year.
Property Condition Can be Controlled
Property condition is something that you can, and should, control. You’ll want to use this to your advantage and make sure you’re maximizing your rental value by offering a clean, attractive, and inviting apartment building.
When you allow your property to look worn and run down, you’re losing rent money. Keep it well-maintained, and make some strategic upgrades and updates. You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new fixtures in the kitchen and bathrooms. Replace your drawer pulls with brushed nickel. Install better lighting, and when your appliances start to break down, don’t continue to repair them. Instead, replace them with energy-efficient models or stainless steel. These minor investments will not only raise your rent; they’ll also attract better tenants.
We’re experts in pricing rental properties. If you have any questions while you’re pricing your apartment building or home or you’d like some support with Champaign – Urbana property management, please don’t hesitate to contact Ramshaw Real Estate.