Here at Birks Asset Management, one of our services is setting and collecting rent on behalf of landlords. We offer this service to our clients because rental prices fluctuate depending on the property location, economy, and commercial development. Since rental prices constantly fluctuate because of these factors, it’s hard for landlords to keep up. That’s why we take it upon ourselves to observe these trends and set a rate that will allow the landlord to receive the best return on their investment.
Here are 5 constructive steps Birks AM takes to set rental prices for tenants to show you how we do it.
Table of Contents
Assess the Home’s Value
When it comes to setting rental prices, we find it beneficial to hire an appraiser who can clearly assess how much the property is worth. Depending on the property’s value, an appraisal can give us an idea of how much to set the rental price. Smart Asset says that landlords typically charge between 0.8% and 1.1% of the property’s value. For instance, if a property is valued at $230,000, the landlord can charge rent between $1840 to $2530 a month. Since we’re competing against other rental properties in the area, setting the rental price with a competitive edge is valuable.
Compare Your Property to Other Rental Properties in the Area
One of our strategies to setting rental prices is by comparing other rental properties in the area. It’s essential not to set a high rental price compared to neighbouring properties because it won’t attract tenants. For this reason, take our time to research and compare other rental prices in the area to maintain a competitive rate.
Lease Length
When we set our rental prices, we like to consider all variables, which means considering the property’s location. For example, suppose a property is located around a university campus like Waterloo or a business centre like Downtown Toronto. In that case, it’s beneficial to offer short-term leases as it will attract more tenants. Providing a short-term lease means a short-term leasing fee can be added, gradually increasing the overall profit.
Track Real Estate Market Trends
It’s important to note that the real estate market is constantly changing. As a result, rent is also ever-changing. For this reason, we ensure to change the rental price to align with the real estate market so that the landlord is receiving the most out of their investment.
Our team of property managers comes with extensive knowledge and experience in real estate, thus, making us experts in setting the right rental prices for properties.
Inquire a Property Manager
According to Buildium’s 2021 Rental Owners’ Report, research shows that 76.9% of property owners use the services of a property manager to help in the leasing process.
Though the steps we’ve listed above sound easy, it still may be challenging to consider every factor and set the right rental price to receive the best return on the investment. That’s why we’re here to make sure your property is retailed and marketed appropriately. Along with setting and collecting rent on behalf of landlords, we also offer several other services, such as tenant screening, financial management, property inspection, general maintenance, and a point of contact for landlords and tenants. To learn more about our services or if you have any questions about setting a rent price for your property, please feel free to Contact Us.
5 Constructive Steps Birks AM Takes to Set Rental Prices for Tenants
Here at Birks Asset Management, one of our services is setting and collecting rent on behalf of landlords. We offer this service to our clients because rental prices fluctuate depending on the property location, economy, and commercial development. Since rental prices constantly fluctuate because of these factors, it’s hard for landlords to keep up. That’s why we take it upon ourselves to observe these trends and set a rate that will allow the landlord to receive the best return on their investment.
Here are 5 constructive steps Birks AM takes to set rental prices for tenants to show you how we do it.
Table of Contents
Assess the Home’s Value
When it comes to setting rental prices, we find it beneficial to hire an appraiser who can clearly assess how much the property is worth. Depending on the property’s value, an appraisal can give us an idea of how much to set the rental price. Smart Asset says that landlords typically charge between 0.8% and 1.1% of the property’s value. For instance, if a property is valued at $230,000, the landlord can charge rent between $1840 to $2530 a month. Since we’re competing against other rental properties in the area, setting the rental price with a competitive edge is valuable.
Compare Your Property to Other Rental Properties in the Area
One of our strategies to setting rental prices is by comparing other rental properties in the area. It’s essential not to set a high rental price compared to neighbouring properties because it won’t attract tenants. For this reason, take our time to research and compare other rental prices in the area to maintain a competitive rate.
Lease Length
When we set our rental prices, we like to consider all variables, which means considering the property’s location. For example, suppose a property is located around a university campus like Waterloo or a business centre like Downtown Toronto. In that case, it’s beneficial to offer short-term leases as it will attract more tenants. Providing a short-term lease means a short-term leasing fee can be added, gradually increasing the overall profit.
Track Real Estate Market Trends
It’s important to note that the real estate market is constantly changing. As a result, rent is also ever-changing. For this reason, we ensure to change the rental price to align with the real estate market so that the landlord is receiving the most out of their investment.
Our team of property managers comes with extensive knowledge and experience in real estate, thus, making us experts in setting the right rental prices for properties.
Inquire a Property Manager
According to Buildium’s 2021 Rental Owners’ Report, research shows that 76.9% of property owners use the services of a property manager to help in the leasing process.
Though the steps we’ve listed above sound easy, it still may be challenging to consider every factor and set the right rental price to receive the best return on the investment. That’s why we’re here to make sure your property is retailed and marketed appropriately. Along with setting and collecting rent on behalf of landlords, we also offer several other services, such as tenant screening, financial management, property inspection, general maintenance, and a point of contact for landlords and tenants.
To learn more about our services or if you have any questions about setting a rent price for your property, please feel free to Contact Us.