The price you put on your Seattle rental property determines how quickly it rents and what kind of tenants you attract. Price your home carefully because if you list it too high, you won’t get a lot of interest and it will remain vacant, resulting in a loss of rental income for you.
If you price it too low, you’ll also lose rental income. The best way to determine how much you should charge in Seattle is to study the local market.
First, conduct a comprehensive rental market analysis.
Take an objective look at your property: does your location put you in a great school district? Is it close to public transportation? A three bedroom two bath home is an ideal size for an established neighborhood.
Consider the property’s location, size and condition. With upgraded appliances and perfect landscaping, you can charge a bit more than you would if your refrigerator is from 1985 and your bushes and shrubs are all dead.
Compare your property to others that are also on the rental market. If similar homes are renting for $1,500, it’s foolish to list yours at $1,800.
Consider charging a little bit less than similar properties. Instead of renting for $1,500, put yours on the market for $1,475. Don’t worry about losing that $25 per month in rent because you’ll rent your home very quickly. Avoiding a vacancy that will cost you thousands of dollars and renting to a great tenant is definitely worth $25 per month.
Don’t price based on your mortgage payment.
Landlords can get hung up on what they think their property is worth. They have a specific figure in mind that will cover their mortgage and all the expenses associated with the property.
That’s not a good way to establish how much you will charge for rent. The rental market does not consider how much your mortgage payment is every month. The only way to establish a price point that’s fair to your tenants and profitable to you is by paying attention to what renters are willing to pay based on other properties.
Remember that a vacant property is not going to make you any money at all, so don’t hold out for a high paying tenant.
If you need some help with a comparative market analysis, or you’d like an expert opinion on how much you can charge for your Seattle rental property, please contact us at Dave Poletti & Associates, and we’d be happy to tell you what we think.