Today we are talking about some of the things you need to do when you’re setting the best price for your Denver area rental property.
Know the Competition
One of the first things you want to do is learn to know your competition. Personally, I like to check out some of the new properties that are arriving on the market. We have a lot of new construction and development coming up in the city, and it’s easy to pass myself off as a prospective tenant. You can do the same thing; just walk through the complex and see what the competition looks like.
If you’re looking at setting a price at your property that’s $1,000 a month for a one bedroom condo, but there’s a new construction project just next door that’s asking the same price but has additional amenities that you lack such as parking or common areas or swimming pools, you need to be aware of that. You need to know your competition. It’s easy to do some research online too. Craigslist now has a map that will tag all the rental properties in a particular area. Scroll through that map and see what others are asking for properties that are similar to yours.
It’s a common misconception that rents are going up and up and up every year. Some landlords think they can charge whatever they want because with so few options out there, tenants will pay what you’re asking. That leads people to overcharge sometimes and ultimately be faced with an unexpected vacancy that’s longer than you would like it to be. Be smart and price your home competitively. Denver does have a low vacancy rate, but if Option A is your place and Option B is nicer or cheaper, you need to be prepared for tenants preferring to rent Option B. Remember it’s easier to drop a price after a week or two than it is to raise it.
If you have any questions about this blog, or you need help establishing a good rental price for your own property, please contact us at Mavi Unlimited Property Management.