The rental value of your Berkeley investment property depends on a few key factors, including the strength of the current rental market, the location and size of your property, and its condition.
Some of these things you can control, but most of them you cannot.
Be smart with your rental pricing strategy and think about these important considerations.
Price Your Berkeley Rental Home Competitively
You need to price your home competitively, even if you think it’s worth more than the market dictates.
The goal is to rent your home quickly to the best possible tenant. This must balance your need to earn as much as you can in monthly rent. Asking for more rent than the market will bear is going to lead to longer vacancy times, and that will cost you money. You’ll also increase your chances of attracting bad tenants who have been denied from renting other properties. Well-qualified tenants will never overpay for a property.
Get to Know the Berkeley Rental Market
The market doesn’t care how much rent you want or need to earn every month. A rental property will only rent for what the market demands. This is something to think about early in your investment process; when you’re buying an investment property in Berkeley. Make sure you understand what you’ll be capable of earning.
Property Location, Size, and Condition
Location is a driving factor in real estate rental prices. A property in a great neighborhood with good schools and easy commuter routes will rent for a lot more than a property that’s more remote and not close to daily conveniences such as grocery stores and freeways.
The size and condition of your home will also control the price. Well-maintained homes with lots of curb appeal and modern updates will capture better rents than older properties that are worn down. Make a few inexpensive upgrades to your property to help it rent for more. Simple things like a fresh coat of paint, colorful flowers, or shiny new hardware on drawers and cabinets can make a big difference.
Compare Similar Rents with Reliable Data
Before you price your own rental property, you need to know what similar properties in your area are renting for. Rental prices can be found online through websites like Zillow and Trulia and even Craigslist. However, you need accurate numbers, not the listed prices. Consider asking a Berkeley property management company for help. Many property managers will do a comparative analysis for free, and they’ll have the numbers that really matter when you’re pricing your home.
Make sure you’re considering any special amenities that your rental property has or doesn’t have. That will make a difference in how you price your home. Your upgraded appliances and floors will make a different in some neighborhoods. In other areas, included parking or backyard space will deliver a higher rental amount. It goes back to knowing and understanding your market.
Working with a professional property management company can help you get an accurate rental price. We know the Berkeley rental market very well, and we have reliable data that will provide a dependable rental range for your property. Contact us at California Pacific Realty for more information.