How to determine how much your medford property should rent for
Would you like to be able to better determine how much your medford property should rent for? Really any property in the valley – Ashland, Phoenix, Talent, Jacksonville, Central Point and Eagle Point.
Setting the right rental amount right away is very important. If you set it too high, then it will sit vacant and that is pure dollars out the window. Let’s say you set the rent at $2,000, but the actual going market rental amount is $1,600. Your property will set vacant for months. You may get someone to rent the property out if the rental market all of a sudden takes off and the demand goes very high, and their is limited rentals available in Medford. Chances are that the market will not change that fast after you start marketing for a Tenant. Then after 1 month of it sitting vacant you reduce the rental amount to $1,800. Still no real takers. Then two weeks later you drop it to $1,700 and finally after a week at that price you find a Tenant. However, the Tenant can’t move in until 3 weeks from now. So that is a total of 10 weeks vacant. That just cost you $4,000 in lost rent for the year.
Imagine if you would have set the rental amount at $1,600 right away. You would have rented it out within the first week, and since you set the price right, you had a lot of people apply. And because you had a lot of people apply, you could be a little more selective and require that they pay sooner than later even if they have not given their 30 days notice yet.
Additionally, because the property had sat vacant for 7 weeks with minimal hits on the property, you were starting to get a little desperate. After all, you are losing $1,600 a month and you want to the bleeding to stop. So in this case, you accepted the first person that applied with a check in hand. You didn’t even run their credit, criminal or background check. They looked good and said they have stable income, good enough, right? Well, the purpose of this article is not to discuss the importance of performing a thorough tenant screening, so we will let that rant go for later.
On the flip side, it is almost just as important to no set the rental amount too low. If you set the property rental amount too low, you will attract the wrong people for the property; likely not the caliber of person that you want for the property. The other ramifications of setting the rental amount too low is that you are amply not going to be receiving the rent you are due.
As you can see it is very important to set the property rental amount at the right level from the get go.
If you would like help in setting your medford property management rental amount at the correct market amount, then feel free to give us a call. And if you would like help in filling your Tenant without any management itself, we do that as well. Call Asurent Property Management Medford Oregon at 541 816-4140 today!