Setting a rental price for your Prince George’s County rental property can be a difficult and challenging task. You have a mortgage to cover, plus additional maintenance expenses necessary for proper upkeep. But, you need to consider many other factors before you set your rental price. In fact, Bay Property Management Group recommends that you do not factor your expenses into the rental price at all.
We know that you want to make a bottom line and cover all of your expenses, but rental pricing is a complex process that requires you to look at many other factors. It is better to keep your property occupied at a competitive rental price that is normal for your neighborhood than to charge a rental price higher than market value and have to handle a vacant property.
Any PG County property has rental potential, but you need to know how much to charge for rent to manage a successful property. As long your property is in rent-ready condition and priced appropriately for your market, you can find a tenant. However, if your property sits vacant for over 30 days, you probably have a rental pricing issue. Always let the market dictate the rental price!
Determining the Rental Price Value of Your Prince George’s County Property
To accurately determine what you should charge for rent, you need to conduct some research about the properties in your area and the current market value. You can obtain a rent estimate report from one of the many real estate websites available to find current rental rates in your area. You can choose between a number of free sites or pay for premium service on others.
These websites can give you an accurate picture of rent in your area based on location, the number of bedrooms, and the square footage of your property. You can use this range to set your final rental price. Here are some sites that we recommend you use to find rental price ranges in your neighborhood:
- Rentometer.com: On this website, you can opt for a free or paid report for rental pricing. The free version provides a suggested price based on some limited information about the area, the number of bedrooms, and your property’s square footage. The paid version is very accurate and worth the investment. In addition to rental pricing estimates, the paid report gives you historical rent data of the other properties in the area, including addresses.
- Zillow.com: This website gives you a map of current listings in your area, which is very easy to navigate and assess your proximity to these other properties. In addition, you can look at other open listings to see what rental prices are currently for properties similar to yours. Zillow even tells you the listing age of properties. If you notice property listings older than 30 days, it’s possible that there may be a pricing issue.
- Brightmls.com: This website is for realtors only, but it has a rich collection of data. You can see what is currently on the market, as well as historical rental data of other properties. You can connect with a local realtor in PG County to gain access to this site. If you do not have a connection, you can also contact a local real estate company to provide you with a breakdown for free.
- Cozy.co: This website charges $19.99 for a rental pricing report in your area – however, this report is incredibly accurate. If you are willing to invest the $19.99 in their service, you can receive an easy and accurate document to facilitate setting your rental price.
What Other Factors Affect How Much to Charge for Rent?
In addition to assessing the rental prices of other properties in your area, you have to look at a variety of other factors when deciding yours. There are many other factors that affect market value and demand in your property’s neighborhood. Here are a few items you should keep in mind when setting a rental price for your PG County rental property.
- Time of Year: In the spring, properties typically charge higher rent than properties in the winter. You should always obtain up-to-date rental pricing reports so that you know the rental prices for the time of year you are listing your property. Demand is lower in the winter, so you may have to reduce your rental prices below market value to drive demand and compete with other landlords.
- Condition and Amenities: If your property has any special features or upgrades, you could ask for rent that it is slightly higher than market value for similarly-sized properties. However, you will have to market your property in a way that showcases these amenities and shows potential tenants why the higher rent is worth it. Make your amenities the central focus of your marketing campaign.
- Market Saturation: If there are a lot of properties listed in your area, you may have to set your rent below market value. Many landlords get impatient with property vacancies during high-saturation times, so they will lower their rent – and you should follow suit to keep your rental price competitive. Make sure to stay up-to-date on the current market rates and the saturation state so you know if you have to lower your rent.
Rental Pricing in Prince George’s County Made Easy
You do not want your property to sit vacant for over 30 days, but by adjusting your rental price it can help to solve your occupancy woes. We understand that you have expenses to pay, but that should not be the deciding factor when determining your rental price. It is better to have a property occupied within 30 days of listing at a $1,500 per month rental price than to lose out on valuable rental income for six months because you charge a $1,700 rent. So, set an accurate price, adjust it based on the interest and conditions of the area, and set reasonable expectations based on your market conditions. Using these factors and proper research, you can set an accurate rental price and attract responsible, consistent tenants.
Do you need assistance marketing and setting the rental price for your Prince George’s County property? Contact Bay Property Management Group in Prince George’s County to learn more about our property management services today.