With the growth of the economy and renewed construction projects, renting properties has become more competitive. Many factors that will influence the rent of a property, and for property management, fixing the right rent could be challenging.
If the rent is too high, there can be increase in vacancies and it will drive away new prospects. If it is low, profits can be compromised and it can even make people thing that there is something wrong with the property. Here are some of the important points that must be considered while figuring out the proper rent to be charged.
Reputation and Popularity of the Property
Reputation and popularity of a property is mainly dependent on the features and type of service provided. If it has the latest features such as Wi-Fi and broadband connectivity, superior entertainment options, play area for children, and smart storage then the property should be popular in the area, and it is possible to charge a higher rent compared to other properties that provide less features.
Type of service provided by property management and the reviews of former tenants will play a leading role in influencing the reputation of the unit. A stellar and golden reputation could demand a higher rent.
Market Conditions and Competition
These relatively strong factors can influence the setting of rent. Property management will have to keep track of rents charged by similar properties in the area, development of commercial establishments, job availability, and the overall economic situation. Experienced realtors in the area can provide sterling advice about the right rent; however, the level of competition between adjoining properties will also be a major factor.
Desirability of Individual Units
It may not be wise to set a standard rent based on number of bedrooms or floor space area, unless everything about the units is going to be exactly the same. For instance, when there are multiple two bedrooms units vacant, the rent could be different for each of these units depending on various factors. Units on higher floors could demand a higher rent depending on the view. For bigger families the layout and storage space available in the unit could be a major selling point.