Aug 22, 2013

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How a Property Management Company Prices Rental Properties

Setting rent rates for your rental properties can be challenging, as you want to acquire the greatest profits possible while still providing tenants with a fair price.  In order to determine a fair rent rate, many real estate owners turn to a property management company.  Medford property management companies take several factors into consideration to accurately price your asset.  Learn how property managers price rental properties.

Compare Properties
Most property owners compare rental prices in the neighborhood to see what types of rent rates are asked for in various properties, factoring in size and amenities.  If your rent is too high compared to similar properties, you could be losing out on quality tenants.  If your rent is too low, you may rent it out faster but will lose money month after month.  A fair rent can be determined by your property management company.  Property managers will take the size, number of rooms, amenities, and the type of property into consideration.

Geographic Factors
Many tenants will pay to live in a home that is in close proximity to desirable destinations.  Homes that are close to shopping malls, main roads, golf courses, and parks are often popular, especially for home-hunters who prefer to walk rather than drive.  Many renters do not mind paying a premium for housing that is in an ideal location.

Setting a Base Price
With the help of your property manager, it is helpful to set a base price and then add on from there.  Slight increases in rent should be considered if the home features amenities or equipment that is not common in rental properties.  For example, having a swimming pool, Jacuzzi tub, two-car garage, new appliances, nice furniture, or free lawn service can attract renters and increase your rental rate.  Taking the time to determine a fair rental rate can help maximize your profits, while providing your tenants with an affordable place to live.

Real Property Management Charles River has more than 25 years of experience in the Boston property market and has the tools and knowledge needed to successively maximize profits for real estate owners.

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