Pricing your rental property in Dallas Fort Worth will mostly depend on the market. One of the major mistakes that new investors and landlords make is to attach a rental value based on what they think their home is worth or what they need in order to cover their mortgage and other expenses.
When you’re renting out your home, you have to study the competition and get to know the current market. Then, you can consider your specific property and its size, age, condition, and location.
We have some tips today that will make pricing your Dallas rental property a bit easier and more accurate.
Study the Dallas Rental Market
Pricing your home will depend on the trends and traits of the current market. If there’s a high demand for well-maintained rental homes and little supply, you can probably raise the price on your property a little bit. If there is a lot of competition on the market, and many homes like yours are available to rent, you will have to think more strategically and be willing to lower your price a bit to attract a qualified tenant.
It’s a good idea to conduct a comparative market analysis. If you don’t know how to do this on your own, talk to a professional Dallas Fort Worth property management company. A good market analysis will gather reliable data on how many homes like yours are on the market, what they’re renting for, and how long it’s taking to get them leased. This will help you price your property correctly.
Consider Your Property Condition
The market range is a good starting point, and then you’ll need to consider how your property compares to others. If it’s in excellent condition with fresh paint and new appliances, you can certainly ask for more than a home that’s older and falling apart, with rusty appliances and peeling paint.
It’s a good time to consider making upgrades and updates as well. If you’ve repaired the dishwasher three or four times over the last 10 years, why not just replace it with a new one? Consider tearing up worn carpet and installing hard floor surfaces, which are more attractive to tenants and easier to maintain. These small upgrades will increase the rental value of your property and help you earn more.
Location and Seasonal Factors
Your location also matters in pricing your Dallas rental property. If the home is in an excellent neighborhood with good schools and easy access to highways and commuter routes, you’ll be able to charge a rental amount that’s towards the higher end of the market range. If your property is more remote or in a busy, commercial neighborhood where there’s no parking, you may have to lower your price and your expectations.
Most tenants look for a new home during the spring and summer months. If they have kids in school, they won’t want to move during the school year. Winters and holiday times are typically bad times to rent out a property. For example, if you’re faced with a vacancy at the beginning of December, you’ll really have to market aggressively for tenants and consider lowering your rental price if you want to get someone in place before the New Year.
We can help you price your property correctly and competitively. Please contact us at Assign Property Management for any help with your Dallas Fort Worth property management needs.