Rental value can be an emotional topic for many investors and landlords. You probably have an idea about what you think your home is worth, and it’s hard to be flexible, especially when you have a mortgage to pay and your own expenses to meet.
However, it’s the market that drives the rental price for properties in San Diego, not your own needs or wishes. A lot of factors actually go into accurately pricing a rental property, and one thing that doesn’t matter, unfortunately, is what you want to earn. You have to price your rental property according to the market. Otherwise, you’ll find yourself with large vacancy costs and less-than-desirable tenants.
When you’re deciding what to charge, take a look at what comparable properties are renting for in your area, and consider the other factors that influence your property’s rental value.
San Diego Location Affects Pricing
You don’t have to be a real estate investor to know that location matters. You’ll be able to charge more when your property is in a desirable location. If you’re close to good schools and shopping, you’ll find that San Diego tenants are willing to pay more. If you’re in an area that’s more remote and it will take an hour for people to commute to work or get to the grocery store, you won’t be able to charge as much.
Evaluate your Property Age and Condition
A well-maintained home will always rent for more than one that’s old, falling apart, and neglected. Make your property attractive. Curb appeal counts, and so does cleanliness. Consider investing in minor but necessary upgrades such as better lighting, a hard surface floor, or even energy-efficient appliances. If a home feels bright and modern when a prospective tenant walks into it, the price can be on the higher end of the rental range and you’ll still find a good renter.
Unique features can also help you rent your property for more. Perhaps you’re in an HOA with a pool and a fitness center. Maybe there’s a double sink in the master bedroom or a walk-in closet in the second and third bedrooms. These things can raise your rent, so highlight them in your listing.
Size Matters with Rental Pricing
Size is also an important factor when it comes to evaluating your home’s rental value. Tenants want homes that have space but are still low-maintenance. A three-bedroom and two-bathroom property with a garage, yard, and plenty of storage space is usually standard for single-family homes in San Diego suburban neighborhoods. Sometimes, if you’re renting out an apartment or a condo downtown, a one-bedroom and one-bathroom unit is exactly what people are looking for.
These are the most important factors to consider when you’re preparing to rent out your home. Make sure you can access reliable data about what other properties in your area are renting for. If you’d like help with a comparative rental analysis or with pricing your property, contact us at Walters Home Management. We can be your San Diego property management resource.