Pricing: Yes, this is the obvious one. Pricing needs to be competitive for the specific neighborhood, area of town, or school district. Market analyses needs to consider not only what other homes rented for but also how long it took to rent them out. There are several different pricing techniques, however, Service Star finds that perhaps the most successful way to price a home is to list the property a little bit above the current market to capture all possible income for the property owner and then reduce the rent by $25.00 every week or so until we hit the “sweet spot” that gets our property rented still within reasonable time. Establishing a bottom line is advisable.
Location: We often see in condominium/townhome communities or single family homeowner’s associations that people are willing to pay a little more to be a tiny bit closer to the community pool. On the other hand, they may turn a home down because it is too close to a community park or a busy and noisy street.
Our experience: A few years ago, we managed a condo in a South Scottsdale community that had a weight room below it. The weight room was actually a condo conversion from an apartment and there wasn’t enough reinforcement to drown out the noise. It took us a little longer to move that property, than a unit we had in the same community that was spa-side.
Rental Seasons: Rental seasons are to keep in mind when planning for a vacancy or turn. IN the winter, the holiday season is one of festive decorations, family traditions, get-togethers, and people have other agenda than moving into a new home. Well, there is some good news! To offset the slower holiday season, we get the summer months, and the rental market in the summer, especially those homes that are lucky enough to have pools, is just as hot as the weather outside! Many attribute the rental market in the summer to the breaks in the school year that allow parents to move their families without the added stress of switching schools mid-term.
Fact: Our data shows that Service Star Realty rents out the highest number of homes in the shortest time frame in the months of February and September.
Property Fixtures: When it comes to rental properties, beauty needs to be “skin deep”. Outdated countertops, warn carpet, and mismatched appliances aren’t necessarily a renting point. It is important to keep in mind that many times, a prospective tenant is as they tour homes do not spend more than 10 minutes inside the home: this means our home must be as close to cosmetically perfect as possible to make an impression.
Example: I live in an apartment community with both renovated and un-renovated units. The un-renovated units haven’t been updated since the property was built in the 1980’s (I’m sure there have been a couple of paint brushes on the walls, and maybe a few carpet changes, but not much else.) The renovated come with newer appliances, Formica countertops, and neutral paint tones. Although there was an un-renovated unit ready to move in immediately, I chose to get on the 3 month’s waiting list for a renovated version.
Granite countertops and stainless steel appliances are nice, but they aren’t a necessity. A clean, recently updated and freshly painted home with matching appliances is more than enough to suit most people’s immediate desires. Questions to ask ourselves: Are my appliances over 10 years old? When was the last time my home was repainted? How old is the carpet? Is there anything that I would change about the property?
Famous Last Words: MARKETING!
If you are renting a home for just a dollar but no one knows about it, it will not rent. You need to place your ad at every possible site: Service Star advertises on over 40 website. And the more people you let know about your rental, the easier it is to get a higher price.
