Pricing Your Regina Home to Rent
It’s critical to establish the right rent to charge. As a Regina landlord, you want to set the optimal rent to maximize your earnings while keeping your rental unit competitive in the market. Now, rental pricing entails a lot of factors. You can’t just haphazardly assign a rent price.
The more accurate the price you set for your Regina home, the more you will attract potential tenants to your property. This means a higher occupancy rate for your rental unit and predictable regular earnings.
To that end, Leenan Property Management has put together both this article and the below video on how to set your rent in Regina at a rate that will see both healthy returns while not pushing away prospective tenants.
Here are things to consider when setting the price of your rental:
Look at Your Competition
Deliberating on the amount of rent to charge can be tough so it’s advisable to look around and observe similar properties. Compare your property to like-kind ones in the area to help you set a fair rental price. Be sure to:
Check Your Neighbourhood
It’s worth your while to look at the properties in your neighbourhood as this can provide you with the existing rental rates. Some properties can command a higher rent especially if it’s in a highly in-demand neighbourhood .
Consider the Number of Bedrooms and Bathrooms
When studying the rental properties in your area, conduct comparisons on similar units. You want to ensure that your property has the same number of rooms as this can give you a more accurate gauge for price setting.
Evaluate Based on Property Type
A single-family Regina home will rent out at a higher rate than a multifamily home. The reason is that the tenant has more privacy and space compared to the latter.
Assess if the Property is Newly Constructed
Renters typically pay more for newer rental properties in contrast to units in older buildings.
Look at Different Sources
Aside from the neighbourhood and properties, there are other sources to gather more information from to help you price your Regina home :
Look at Other Online Ads
Information is on hand when you visit real estate listing sites. Study and monitor a set of properties and take the time to analyze which ones get occupied easily. Note the prices of those properties and the units that remain unrented for a long period as this will help you find the optimal price for your rental.
Research in Person
You can also take it a step further by arranging a property showing. This way, your comparison is realistic. You can inspect the amenities of a property similar to yours at closer range. You can also make some inquiries as to the level of interest from prospective tenants.
Contact a Realtor
As a real estate expert, a realtor’s opinion is invaluable. You can reach out to some so they can look at your property and make an assessment. They’re more aware of the market trends in the industry and can offer excellent advice.
Consider Your Amenities and Make Price Adjustments
If you own several properties in Regina, avoid using a standard price for each property based on the number of rooms. If you plan to rent out different units then it’s best to evaluate the amenities and value per unit. Most units and properties have different features and using a standard valuation can register as a loss to your income.
For example, if one unit has a fireplace while the other doesn’t and you assign the same rent rate then you’ll end up with lower profits. You should always adjust your price according to what a unit offers the tenant.
Other amenities to use when setting the rent price are:
Property’s view - a great view is more enchanting than a brick wall. So you can assign a better rent price on good views.
Property upgrades - units that have luxurious appliances or better quality flooring can be given a higher rent price.
Property size - the larger the space, the more rent you can charge.
Property layout - A narrow layout of a property could appeal less to prospects. So consider this when assigning the rent price
Property extras - balconies, rooftop gardens, attics, extra closets, and basements will fetch a higher price than properties that don’t have these.
Accurate Pricing Generates More Profits
Proper assignment of rent price for your Regina rental home can increase your earnings. Your rent price should cover the common property costs such as mortgage payments, and maintenance and repair fees while providing you with a monthly profit.
Although property owners who paid a huge initial property cost can’t recover the ROI quickly or see the profits right away, the unit must still offer benefits. By setting the right rent you allow yourself better odds of covering operational costs, paying off the mortgage, and generating more income in the long term.
Property Viewing Requests
Notice if potential renters have been getting in touch to schedule viewings for your Regina rental home. If there isn’t a great amount of interest in the property then this can be a sign that the unit isn’t priced correctly.
When the rent is too high, this can discourage prospects, especially if your amenities are average. You should also consider your property’s location since this has a strong effect on a property’s rent demand.
Market Demand as Rent Price Determinant
If you’re new in the rental industry, you might have the impression that setting a price is done once only. This isn’t the case. You must review the rent price of your Regina, Saskatchewan home from time to time. Analyze the market as a gauge where rent rates are at and make adjustments according to the demand.
If the demand is higher due to a strong economy, an influx of people moving to the area , or newer attractions in the region, set the price higher. If the demand is low for a variety of reasons then reduce your rental price.
It should be noted that if you’re planning to make any adjustments to rent that you follow provincial and federal rental laws.
There are many options at your disposal to help you ensure that you are charging a fair but competitive rent. However, doing rental analysis isn’t a one-time thing and can be quite time-consuming. Therefore, consider hiring a property management company to help you.
The experts at Leenan Property Management have the industry experience to ensure that you are charging the rent right for your property. Contact them today to learn more about their services!