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How you price your rental property influences the type of renters you will attract, as well as the amount of rental income you receive. It is no surprise that many landlords struggle to determine just what that rental fee is. While a low rental price will appeal to many tenants, it will limit rental income. Similarly, charging a higher amount to maximize profit may repel quality renters, keeping your units vacant longer. A long-drawn-out vacancy translates to a significant loss of benefits and rental income. So how does an Orlando, Florida landlord determine the right price for his or her property?
Know the Pricing Red Flags
The first step to setting the right rental price is to determine whether your price is too high or too low. If a week after listing the vacant property no one makes inquiries or prospects inquire but do not show up, chances are your price is too high. The same may be true if people come to view the property but decline to fill out an application . However, if within the first day of listing the property you receive multiple inquiries, and the prospects are in a rush for you to take a holding deposit, your rental price is likely too low.
Understand the Rental Pricing Determinants
The price of rental properties in Orlando, Florida depend on several factors. Major factors include the square footage, number of bedrooms and bathrooms, lease duration, inflation rates, location of the property, as well as the type of housing unit i.e. a single family or multifamily unit.
Minor rent price determinants include the amenities and fixtures in the property, the lease clause, laundry, utilities, appliances, HVAC systems, cleanliness of the unit, and whether the property is furnished, has a lawn, fence or parking space.
Research Listings Prices
As a landlord, the easiest and quickest way to determine the right rental price is to check the property listing platforms. They provide valuable information such as how much owners want for their properties.
Consult a Professional
Another effective way of arriving at a rental price is to consult with a rental property expert. It could be a fellow landlord, a real estate agent, a property manager, or members of a Rental housing association.
If you decide to talk to a property owner or association member, look for one with assets that are comparable to yours. The units should be similar in type, number of bedrooms, and square footage.
If you prefer to work with a real estate agent or property manager, make sure that he or she has sufficient expertise and experience in handling rentals.
Compare Real Rent Data
Although the listings platforms provide a guide on how much you could charge, the prices they indicate are not necessarily what the landlords ultimately receive. They are merely an expression of what the owners hope to get. Hence, you need to investigate the rent listings’ prices further to ascertain the actual rent fees.
An excellent way of comparing rent data is by using Rent Estimate platforms which will help you to calculate rental prices with absolute confidence. They are basically a rent calculator, which gives you a recommended rent estimate based on similar properties in your area.
It is a good idea to run a rent survey on several platforms like Cozy, Zillow and Rentometer. The guesstimate report will provide valuable information including;
- The rent estimate for your property
- The Confidence Score
- The estimated local vacancy rates and the precise rental amounts of comparable units, and
- The historical Orlando Florida rent trends.
Once the calculations have been completed, the resulting reports from each of these platforms can be compared to the actual rent price of your property. It is likely that your rent will either be higher or lower than the results of these platforms.
The Rent Estimation report makes it relatively easy for a landlord to determine whether his or her rent prices are under or above market rate. As a result, he or she can adjust the rent to a competitive rate to attract quality renters.