How to Set Up Rental Prices for Single Family Residences
Approaching the pricing for your rental properties should be done with a pre-determined strategy in mind. The process of setting up rates for single-family residences or SFR's around Atlanta is not as easy as you might think it could be.
Your property management plans need to be reviewed as carefully as possible. You must make sure your rental prices are appropriate based on a number of key criteria that are relevant to your property. These prices can be influenced by the type of home you have and the space that it is located in among many other valuable factors.
Consider the Facilities
Your real estate investment might be filled with a variety of desirable features with the potential to give your tenants an amazing experience. You may already have features in place, or you may consider adding features, from a beautiful granite counter tops and new wood cabinets to adding another bathroom or bedroom or installing hardwood floors, there are no limits as to what you can add to your investment property. The right features in your rental home will allow you to justify a higher rental rate.
Where's the Location?
For example, in Atlanta, properties located inside the perimeter (or the inside I285, which is a circle around Atlanta) are always priced higher than the properties in the suburbs. Of course, some suburbs are just prices on their own...but you get the drift. Within your city, you know the "Hot" area and "Not So Hot" areas. Price your rental property accordingly. We grade the areas such as A+, A, B, B+-, or C. We won't buy any properties in areas less than "C" as we feel it's not safe.
Check around Your Area
You should look to see what other rental homes are available in your local area. Check and see what their rental values are as well as the features that these properties have. If you find that your pricing is not in line with the local competitive rates, you may need to consider a change. We have written several articles on rental property rates and if you are experiencing problems with getting good prospects for your property, consider lowering (or raising) your asking price.
When Is the Season For Rentals?
One big part of tenant relations that you should explore, relates to the season when people may be interested in renting out a property. The peak season for your home will vary based on factors like the location of that home and the activities that take place around that area. Our company, actually, does not allow renewals from end of August through end of December. We have noticed that it's much harder to rent SFR (Single Family Residences) during that time period in Atlanta, so we came up with a work-around.
This is especially important for investment properties that focus on short-term rentals or vacation properties. Peak seasonal rentals may include holidays or weather related considerations that may require adjustments to your rental pricing strategy depending on the time of year. You may be able to command higher rates during some periods, but in order to maintain cash flow; prices may have to be lowered during other periods.
Remember that your SFR can be a great investment but you need to make sure that your rental price is appropriate to your market and the type of rental property you own. Be sure to contact the friendly professionals at ALH|Podland Realty & Rental Homes Property Management for assistance if you ever need advice in the pricing of your rental properties.