Put on your detective cap to determine your property’s potential.
Whether you’re a new landlord or a seasoned pro, one question will always be current: “How much rent should you charge?” This is because the right rental rate will generate reliable rental income and reduce vacancy.
Of course, getting to this number is a fine balance—too high a price can turn off potential tenants, but too low a price can affect the viability of your investment. Even a premium property can fall victim to vacancy—be it due to time of year (or a garish colour on the walls!).
Before you post your property for rent, consider a bit of detective work to determine your property’s ultimate potential.
Step 1. Take Stock of Your Property
What features make your rental property stand out from the crowd?
– Location, location, location: Transit, community centres, and restaurants—within walking distance
– Year Built: New builds and newly-renovated = quicker to rent out
– Parking: Secured underground parking > street parking
– Square footage: a 1000-square foot 2-bedroom condo rents for more than one that’s 800-square feet (extra bathrooms help!)
– Extras: Utilities, stainless steel appliances, washer/dryer, dishwasher, storage locker, and (mountain/city/water) view!
– Building Amenities: Perks like a pool, sauna, security, gym, and party room can increase the rent, too
Step 2. Assess the Current Situation
Temper expectations based on availability and market trends.
Scroll Craigslist, Facebook Marketplace, and Zumper for similar rental properties. How does your property compare to similar rentals in the same building? And to rentals in the same neighbourhood?
Consider trends like layout preferences and time of year. Remote work has never been more popular; does your property offer a den perfect for WFH? When should you post your property?…Families and students are more likely to move before the school year starts, and who wants to move in the rain?!
Step 3. Account for Your Time & Efforts
Your rent should be sufficient to cover the following over the long-term:
– Mortgage (if applicable)
– Maintenance and Repairs (if applicable)
– Strata Fees
– Property Taxes
– Headaches (dealing with upgrades, repairs, or tenants)
While some years may involve more time and money (think strata special levies and/or a fresh coat of paint) than others, your investment is meant to work for you–not the other way around.
Step 4. Call on an Expert
To confirm your hunch on rental rate, or secure help renting out your rental, consider a call with a property manager. They’ve got “on-the-ground” knowledge of rates (and use this data to monitor/test/adjust when necessary), plus trending tenant preferences.
And since they’re pros at writing attractive listing descriptions, taking photos, coordinating showings, and screening applicants, you could consider one to find you a long-term tenant. And to collect the rent on your behalf, too.
Getting the scoop on the right rental rate is not always straight-forward, but a worthwhile mission. Finding a competitive price-point will both maximize your property’s potential and attract a high-quality tenant.
How much does your property rent for?
To find out, call Birds Nest Properties at 604.260.9955.
Birds Nest Properties is a boutique property management company that manages rental properties in Vancouver, Burnaby, Richmond, North Vancouver, and West Vancouver.