Landlord Tenant Screening

When looking to fill vacancies at your property, there are a number of factors that need to be considered that impact how much you should charge for rent:

1. Competition The quickest way to get an average range of rent that you will be able to demand is to look at your competition in the local area. Search through the local newspaper's classifieds, on websites like Craigslist, or simply by using a search engine to look for homes to rent or apartments in your town. Once you identify the companies you're competing with, you can analyze their services, prices, and reviews. This shouldn't be the only indicator of what you can price your property at, but you can use this to get a starting point.

2. Demand The current economy can make a big difference in whether or not you'll be able to get tenants to fill vacancies. If there are not many people looking for a place to live, then charging a higher rent will not be feasible. On the other hand, if you are filling up quickly and there are still people looking for a room to rent, then it is a good time to bump up the rates.

3. Location Where your property is located can be of significant value to certain tenants. Being close to certain shops, parks, sources of entertainment, food, and city life can impact the value of your property. As a result, you have the opportunity to charge a little more than distant competitors. However, if you charge too much, a potential tenant may be willing to live further away to save money.

4. Season The seasons and the time of the year can also impact your pricing. Avoid keeping a "fixed" rate as desirability will go up for individuals or families looking to move during certain parts of the year. Even if your apartments are smaller, they can still be of value to anyone that is going through a hard financial time and needs to downsize into a smaller apartment.

5. Desirability The incentives that you or your competitors offer can be the difference between a tenant landing in a vacant home on your property or not. If your competitors are offering better incentives, like free cable or utilities, to their tenants in order to draw them in, then you may not be able to set a higher price for your apartments. An alternative is to keep the rent slightly below average and then offer paid services to your tenants to make up for the lost monthly income.

6. Test the Market The quickest way to see where your prices fall is to test the market yourself. You could begin by putting in an advertisement with a local newspaper or on Craigslist where your pricing is on par with other competitors. If you are filling open spaces quickly, then you may have set your pricing too low. If they are filling up slowly, then you will want to lower your prices instead. While there is no perfect formula to determine the exact rent that you should charge new tenants, the only way you can know is to come to a decision by considering some of the above ideas, testing the market, and readjusting throughout the year based on what works and what doesn't.

This entry was posted on January 28, 2015 at 5:09 PM and has received 5992 views. There are currently 0 comments. Print this entry.

If you have a rental property, you might have asked yourself a question that seems to be hard to answer for others: Should I do it myself or should I hire a property management company? There are a lot of factors to consider before making a decision. Will your income be sufficient to pay for such company while still earning? Do you have the time, knowledge, and interest to handle it yourself? Can you give your tenants the attention they need if you take full responsibility?

Regardless of if you are renting out a single-family home or multiple apartment units, your main goal is to satisfy your tenant while making your investment work for you. But how can you do both if you're also the one who manages it? Your tenant will definitely call you at the most inconvenient times with complaints, emergencies, and repairs. If you have a full-time job, you will likely struggle to get everything done in a timely manner both at work, at home, and at your property. Here at Tenant Background Search, we strongly recommend hiring a property management company to take care of your property and make sure everything is being handled properly. Here are the top four benefits of hiring a property management company instead of handling it alone.

Time is Money

Tim Ferris mentioned in his book The Four Hour Work Week that the new rich do not depend on money alone. Wealth depends on money, time, and mobility. If you are handling the maintenance, rent collections, complaints, etc., then you are working for money and your money or investment is not working for you. If you have a property management company to depend on, you can use that extra time for travel, your family, or other business, while still making a profit.

Assistance with Legal Needs

Property management companies know a lot about federal laws regarding the industry, taxes, and other legal documents and agreements you might need for your property and for your contract with your tenant. Their expertise helps to make sure every detail is in order.

Finding the Right Tenant

You don't need to be a marketing expert to get a tenant. However, finding the right tenant is an important issue to consider. You should always run a background and credit check on a potential tenant. Tenant Background Search can help you discover if he or she has any criminal records nationwide, a good moral character, and a clean renter's history from past addresses. Another important thing is to do a tenant credit check. This can be time consuming and a lot of work to do alone, but assistance from a property management company can make it much easier.

Lower Maintenance and Repair Costs with Wider Network

Your property will definitely need repairs at some point. Proper maintenance, in addition to repairs, is important to satisfy your existing tenants or to attract prospects, as well as to protect your investment property. Property management companies deal with trustworthy, licensed, and insured contractors for these types of services and more, and you will save money due to bulk orders and discounts. They also have a wider network that they can use for contingency plans. This makes the process risk-free for you and for your tenants, all the while saving you money.

This entry was posted on January 7, 2015 at 2:08 PM and has received 6552 views. There are currently 0 comments. Print this entry.