Rental prices in the Bay area and throughout California have been getting a lot of attention recently, particularly because of the new rent control laws that went into effect this year.
When you’re pricing your own rental property, you have a lot to think about. While certain things within your control can affect the rental value of your home, such as condition of the property and upgrades or amenities, the market and the location and even the season will largely drive what you’re able to charge in rent.
You need access to good data and reliable information about what competing properties are renting for before you price your own home.
Understanding Market Trends in the Bay Area
One of the things you have no control over is the strength of the current rental market. The price or your rental property will follow the market. If there’s a high demand for properties like yours, you can charge a little more. If your property is one of a hundred just like it, you’ll need to price it more competitively in order to get the attention of good tenants. Today’s tenants are smart. They know what they’re willing to pay, and they won’t over-pay for a property. Make sure you understand the market and the tenants in your area.
Before you price your property, make sure you conduct a rental analysis. Get help from a Bay area property manager if you don’t have the data that you need. Your comparative analysis will show you how your property measures up to others. It’s one of the best ways to determine how much you can rent your home for.
Location Matters in the Rental Market
Your rental property’s location will also influence its price.
If you have a single-family home in a neighborhood with a good school system, you’re going to be able to charge a lot more than you could if your property was in a less desirable zip code without access to good schools, commuter routes, and access to shopping and recreation. Properties that are further flung from desirable downtown areas will usually rent for less. Think about location before you buy an investment property because it will impact your rental value.
Property Condition Affects Price
Property condition is something that you can actually control when it comes to pricing your home. When your rental home is worn and run down, you’re losing rent money. Keep it well-maintained, and make some strategic upgrades and updates.
You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new faucets in the kitchen and bathrooms. Replace your drawer pulls with brushed nickel. Install better lighting, and when your appliances start to break down, don’t continue to repair them. Instead, replace them with energy-efficient models or stainless steel. These minor investments will not only raise your rent; they’ll also attract better tenants.
We understand the rental values and the trends in neighborhoods and communities throughout the Bay area. If you’d like some help pricing your rental home, contact us at California Pacific Realty.