Dear Property Owner,
When you purchase rental real estate or decide you want/need to rent an existing property; the first thing you need to decide is what you’ll charge someone to occupy the home.
How will you come to that decision? Most people read the ads and see what homes or condos of similar size are renting for. But that really isn’t going to tell you what you need to know. Unless you’ve seen both the interior and the exterior of the properties, you don’t know how their condition and location compare to yours. And of course, condition and location play an important role in how much someone will pay.
Fair market rent will also depend upon a few other factors. Will you provide cable or will they need to get their own? How about high speed internet? Will your tenants pay a separate fee for sewer, water and garbage service, or will these be included in the rent? If there is the need, what about lawn service?
The result of not knowing the going rate for comparable properties is that owners simply have to guess, and hope for the best. Oddly enough, we’ve found that most property owners charge a lower rent than necessary.
When we take over the management of a rental property, we are generally able to raise the rents enough to more than cover our management fees. In addition, we’ve found that tenants who pay a little more are usually more responsible and keep the property in better condition than tenants who pay less.
If you’d like to explore how Baron Holdings Real Estate and Property Management can help increase the cash flow on your rental property while eliminating much of the worry, give us a call at 863-968-6721. We’d be happy to explain our service, our procedure and our fees.
The Real Estate Team at Baron Holdings Ltd.
Steve, Brittany, Pam and Angie
P.S. Fair Market rents change in keeping with other economic trends. We stay on top of those trends and make adjustments accordingly.