Today we are going to talk about how to set accurate rental rates for your property in San Diego. We all know it’s critical to maintain competitive rental rates in order to preserve the value of the asset and your cash flow.
There are three specific methods that we use here at Cassidy & Associates when we are helping people set a price for their rental property.
Rental Rates under Contract
First, we look at recently placed tenants who are living in similar properties to the home we are pricing. We look at what that rental rate is once the property is under contract. That determines an actual rate and we know what the tenants are paying to live there.
Another part of our pricing strategy is to go online. We take a look at all the sites that list rental properties, such as Craigslist, and we check for similar properties in a geographically close proximity to ours. This tells us what owners and managers are asking for the property. Other property management companies or mom and pop do-it-yourself landlords may be responsible for coming up with these prices, and it helps us to know what’s being asked.
We have state of the art software that is cloud based and specific to the property management industry. This innovative software is able to go into other property management organizations and look at exactly what the rental rates are for similar properties the area that are under contract with these property management companies. It helps us to price our rental homes competitively.
These are the three methods that allow us to establish competitive and accurate rental rates. As we said at the beginning of this blog – it is critical to maintain competitive rental rates in order to preserve your property’s value and encourage cash flow.
If you have any questions about setting your rental price, or you’d like to try one of our methods, please contact us at Cassidy & Associates Real Estate and Property Management Services, and we’d be happy to help you.