How to Set the Optimal Rental Price for Your Home

Seller

You may have decided to rent your property. The first step is to set the rental price. Will you be utilizing the services of a rental agent, working for a real estate property management firm? When dealing with Jacksonville property, it makes sense to avail yourself of these services. Agents will visit your property, conduct a brief property analysis, and advise you of the fair rental value of the property.

What does the property analysis consist of?

In general, a good analysis will look at the general rental market. They will assess the condition of your property compared to others, prices that other similar properties are renting for, what type of amenities your property has, and how popular the area around the property is. The estimated rental value is comprised of all of these factors.

Am I bound by the analysis or appraisal?

You are not bound by the appraisal; it is only a guideline for prices you may consider charging. However, Jacksonville real estate agents are well experienced in determining a fair market value. Thus, you can be assured that the price they quote is a reasonable, but fair, price for the area.

I really would like to be able to charge more.

If you intend to charge more for your rental property, you will need to give perspective tenants a reason to pay more. Will you provide upgrades in the form of better appliances, higher quality carpeting, or decorator upgrades? Do you provide washer and dryer hookups while others do not? If it is customary to provide hook ups, perhaps you can provide the washer and dryer. In order to successfully charge a higher rent, you must have something special to offer prospective tenants.

I don’t really think I want to use a real estate management firm.

Real estate management firms act as a buffer between you, and your tenant. Ask yourself if you want to have a tenant call you at 3 a.m. Friday morning when their water heater breaks. You might also consider the amount of effort that will need to go into locating a tenant who is clean, who pays rent on time, and who does not have loud parties on the property. All things considered, utilizing an agent makes excellent sense. One of the greatest reasons to utilize an agent is that their services may be tax deductible!

The agent disagrees with what I want to charge for rent.

You can certainly ask for a different rent. However, if you are working with an agent, they may decline to handle the property if what you ask is too far out of line with local pricing. Both they, and you, have a vested interest in keeping your property rented. They are experts in determining a fair rental price, and will be able to best serve your needs by providing you with consistent paying renters at fair rental market value.

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