Do you own a Miami, Florida rental property?
You need to fill the vacant rental units to keep a positive cash flow. There are various ways to lower the vacancy rate. Setting the proper rent is one of the ways to ensure a steady return on investment.
Asking for a suitable price for the unit attracts renters quickly. However, appraising for enticing tenants isn't about lowering the numbers to get enough interest. You should focus on numerous factors that help you decide the final price.
With our experience at Income Realty of managing properties, we were able to come up with the principles of valuing your Miami home's rent to create a strong interest in prospective renters.
#1: Consider the amenities
The rent fee reflects the unique features of a property. Set the price according to the amenities that set your home apart from the competition. There are many aspects to take into account, including:
- Does the property have a swimming pool?
- Is there a separate laundry room?
- Do you have a playground for families with kids?
- Is there a gym on the premises?
- Have you conducted any recent renovation?
- Are there any new household appliances?
- Do you have a hardwood floor, granite countertops, or any other upgrades?
- Does the building come with a balcony or similar extras?
- Is there a highly enjoyable view from the windows?
Occupants appreciate facilities that raise their quality of life. Good guests are willing to pay extra for desirable properties. Asking a lower fee than the competitors could raise doubts about its true condition.
#2: Avoid blanket pricing
Do you own multiple rental properties?
Setting the same rate for all the units is tempting. It feels like less work. However, it pays to adjust individual prices.
Take into account the square footage, floor levels, layout, and amenities. For example, one of the units might come with extra storage space. This should be mirrored in the final rent amount as well.
#3: Analyze the competition
Attracting tenants swiftly by setting the appropriate rent price calls for analyzing the competitors. Your property exists in the context of a local real estate market. Look at comparable properties to help you set the price.
The key here is to find similar properties. You could consider these aspects:
- Is your property a single-family or multifamily home? The former tends to call for a higher price.
- Find comparable properties in the same neighborhood. Rental prices can differ a lot in the same city depending on the particular area.
- How many bedrooms and bathrooms does the dwelling have? Compare properties as similar as possible.
- Is the property a newly constructed? Account for the building's construction date as well.
#4: Pay attention to the feedback
The advertising period is the prime time for valuable feedback... And feedback is very important! People might comment on the rental price being fair or not when contacting you after seeing the listing.
Most of the time, the feedback won't be direct. You need to analyze the response rate.
Do you get a surprising amount of calls hastily after putting up the ads?
You might fill the rental unit, but this would come with a hidden cost. Charging a price too low means leaving money on the table.
#5: Add value to boost the rental rate
Do you want to attract high-paying tenants?
You are able to command a higher price by positioning to fulfill more upscale expectations. Here are some practical suggestions:
- Upgrade the appliances
- Increase storage space
- Maintain the green spaces
- Install a security system
- Renew the plumbing fixtures
- Replace the flooring
- Install a surround sound system
- Opt for tankless water heaters
#6: Conduct a lot of research
Do extensive research to determine the rate that attracts guests for your Miami home. Don't hesitate to use all the available means to find information that helps you set a suitable price.
Online advertisements provide a lot of value as you can track the costs of similar properties.
Part of the research effort covers the analysis of wider economic trends. For example, you may expect a higher influx of prospective guests when the economic situation is difficult. A greater number of people may be unable to afford their homes and have to rent their living space instead.
#7: Weigh the lease length
Most landlords operate by using standard lease lengths of one year. However, you may consider experimenting with other lease lengths as well. For example, you could agree on a lease for 6, 9, or 18 months.
It's reasonable to charge higher rent for short term rentals. At the same time, providing an option for a shorter lease may open you up to occupants that wouldn't consider renting your property in other cases.
The bottom line: how to set the rent to attract tenants quickly
The fitting rent price is a vital step for attracting residents. You should consider the various aspects of your Miami home to set a price that works best. Consider these points when valuing your property:
- What kind of amenities do you provide?
- What does the competitive analysis show?
- How long is the lease length?
- Do you want to attract high-paying tenants?
- What's the feedback on your appraising?
If you need the services of a professional property management company, contact Income Realty today!
