Setting a rental price for your Lancaster investment property is an important step in finding and retaining good tenants. You want to price your unit high enough that you’ll earn some good cash flow and contribute to high returns. But, you don’t want to overprice that rental home, otherwise it will stay vacant for longer.
Lancaster tenants are pretty smart about what they’re willing to pay for their next rental home. It’s important that you focus on the market and the property that you’re offering when you determine a rental value.
Study the Lancaster Rental Market
The Lancaster rental market will drive what you’re able to charge in rent. Smart investors know there’s little you can do to control this. We recommend that you get a complete rental analysis performed by a Lancaster property management company. We have access to good data about what properties like yours are currently renting for, and how long the vacancy periods tend to last.
The price you place on your rental home will depend on what’s going on in the rental market, and whether there’s a demand for units like yours. The whims and preferences of tenants often change, and today those tenants are more educated than ever. Qualified renters won’t be willing to pay more than the market dictates.
Property Location and Pricing Your Lancaster Rental Home
Your property’s location will influence its price. Single-family homes tend to earn top rents, but there is a lot that multi-family properties can offer as well, especially when it comes to location. If you’re close to schools, workplaces, shopping, and entertainment, you can charge a bit more. Tenants today are often looking for walkable neighborhoods, so if you’re renting out a unit in a building that’s within walking distance of grocery stores and restaurants or parks, you’re going to be able to charge closer to the top of the market range. Before you buy a rental property, remember that location is something to consider when you’re contemplating a purchase.
Size and Condition of the Rental Property
The size of your home will also impact the price. Amenities will also matter; is there outdoor space like a small courtyard or a balcony?
Property condition is something that you can control. When you allow your property to look worn and run down, you’re losing rent money. Keep it well-maintained, and make some strategic upgrades and updates. You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new faucets in the kitchen and bathrooms. Replace your drawer pulls with brushed nickel. Install better lighting, and when your appliances start to break down, don’t continue to repair them. Instead, replace them with energy-efficient models or stainless steel.
These minor investments will not only raise your rent; they’ll also attract better tenants.
We’re experts in pricing rental properties in the Lancaster market. If you have any questions or need any help, please contact us at Fetch Home Management. Whether you’re looking for Lancaster property managers or simply need some resources when it comes to Lancaster property management, we’re here for you.