When you’re establishing a rental value for your Dallas/Fort Worth investment property, you need to know what the market is demanding for homes like yours. The best way to understand the average market rents is by conducting a comparable analysis with other properties that have rented recently.
Today, we’re sharing some tips on how to compare your rental property to others on the market, and what that can tell you about how you should price it.
Look for Similar Rental Homes
It’s important that you’re comparing your property to others that are similar in size, location, and condition. If you have a one-bedroom, one-bathroom condo with a view of downtown Dallas, there’s no sense in looking at large homes in the suburbs. Restrict your search to properties that aren’t just in your city, but in your specific neighborhood and zip code. Property and rental values can change from one street to another. Compare your home to others that are the same age and have the same types of amenities and upgrades. If you have granite counters and hardwood floors, compare your property to those who have been recently updated.
Consider Vacancy Times
You should also consider how long a property has been on the market. If a $1,500 home like yours took three months to rent, but a $1,250 home like yours took a few days to rent, you’re going to learn something valuable. Most rental websites will tell you how long a rental property has been on the market.
Rental Price versus Asking Price
It’s important that you have accurate and reliable data. Find out what these homes actually rented for, not what they were listed for on Craigslist. A rental property may be advertised for $1,800, but it’s possible that it was ultimately rented for much less. Rental websites like Zillow and Trulia can be helpful in showing you a snapshot of the market, but you need some good data that can be used to accurately reflect what homes are renting for in your area.
Work with a Professional Dallas/Fort Worth Property Management Company
The best way to accurately price your rental property and compare your unit to others on the market is by working with a professional property management company. Find a local expert who leases and manages homes like yours in neighborhoods like yours. It’s the best way to access reliable information, and a property manager will be able to take a close look at your property and tell you where it fits into the current market. Property managers understand local trends and they know what tenants are looking for. Many companies will even offer you a complimentary rental analysis. You should take advantage of that.
We’d be happy to help if you’re wondering how to price your Dallas/Fort Worth rental home. Pricing it too low will certainly leave money on the table, but pricing it too high will lead to longer vacancies, which are incredibly expensive. We know how to find the right balance. Contact us at McCaw Property Management.