Setting a rental price for your Sonoma County rental property is an important step in finding and retaining good tenants. You want to price your property high enough that you’re not leaving any money on the table, but you don’t want to price the home too high because that will only result in a longer vacancy period.
You also have to consider rent control. If your rental property is covered by rent control laws, you will be limited in how much you’re able to raise the rent every year. All of these things can lead to confusion, but you want to confidently attach a good rental value to your home before you begin the marketing and showing process.
We have some ideas that work for us when we’re pricing the rental properties we manage.
Study the Local Rental Market
The Sonoma County rental market will be the driving factor when it comes to what you’re able to charge in rent. There’s little you can do to control this. We recommend that you get a complete rental analysis performed by a local property management company. We have access to good data about what properties like yours are currently renting for, and how long the vacancy periods tend to last. The market changes dramatically from neighborhood to neighborhood. Make sure you’re strategic about what you’re considering when you compare rental values.
The price you place on your rental home will depend on what’s going on in the rental market, and whether there’s a demand for units like yours. The whims and preferences 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.tenantlol[
Location, Location, Location: It Matters in Pricing
Your property’s location will influence its price.
Single-family homes in Sonoma County tend to earn top rents, especially if they’re located in desirable neighborhoods in good school districts. Apartments and condos that are close to workplaces, shopping, and entertainment also bring in high rental values for owners.
There’s not much you can do about the location of your rental property when you already own it. You simply have to consider what the location offers (and what it doesn’t) when you’re attaching a rental value. Before you buy a rental property, remember that location is something to consider when you’re crunching the numbers.
Property Condition Impacts Rental Price
The size and amenities of your home will also impact the price. Is there outdoor space like a small courtyard or a balcony?
Property condition is something that you can control. 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 faucets 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 in Sonoma County. When you need some help leasing your home, contact our team at Healdsburg Property Management.