Here’s a question we get often: How do you set the rent price?
Rental pricing is a balancing act. First, we take into account the home:
1. Type and size: Apartment, condo, or single-family home? How many bedrooms and bathrooms?
2. Location: Is the neighborhood desirable and safe? How far is the home from schools and amenities?
3. Features: Is there a fenced-in yard, garage, or a pool?
4. Condition: How old is the home? When was it last upgraded?
Once we understand the property, we have to look at the big picture of the local rental market:
1. Vacancy rates: Vacancy rates tell us how much demand there is for housing. When there are fewer vacancies and less inventory, rents go up. But when houses are sitting on the market for months before being rented, rents go down. With over 7 years of property management experience in the Biloxi area, we understand how the ups and downs of vacancy rates can affect rent.
2. Rent prices over time: We track how rental prices change over the years. This can depend on lots of factors. Right now, we’re seeing increases in homeowner’s insurance rates, which means rental prices are going up as well.
3. Location precision: Not all zip codes or communities are priced the same. We pay attention to each neighborhood. We compare rental rates for nearby houses and know the average income for a specific area, which can influence what people are willing to pay for rent.
Setting a fair, competitive rental price benefits both owners and residents. If the rent is too high, potential residents will look elsewhere and the property could sit vacant for months. But if the rent is too low, it won’t cover the mortgage, taxes, insurance, repairs and other expenses.
Call MS Coast Rentals today to speak with our experienced property management team and find the rental price that is just right for your home.
Image credit: Photo by Igal Ness on Unsplash
