How much is your Indianapolis rental property likely to earn in monthly rent?
Establishing a rental value will depend on a number of factors, including the home’s location, the condition of the property, and the strength of the market.
Rental values are high right now, thanks to inflation and a large demand for attractive well-maintained rental homes. With mortgage rates rising, more people are choosing to rent. That doesn’t mean you can price your home as high as you want. It’s important to be competitive so you can limit your vacancy time and attract the most qualified tenants.
Here are some of our tips to competitively price your Indianapolis rental property.
Get to Know the Competition
Before you price your own home, get an idea of what you’re working on within the current Indianapolis rental market. Examine the rental prices of competing properties that are similar to yours.
To do this, you’ll need accurate data. You can start with the prices you can find on rental websites like Zillow and Trulia. Talking to an Indianapolis property manager about what homes are renting for and how long it’s taking them to rent can bring even more benefits. You’ll have a more reliable data set before you price your own property. A management company can conduct a rental analysis for you and help you settle on a competitive and profitable rental value.
Price Your Property to Rent It
Once you know what kind of prices the market is comfortable worth, you’ll need to decide where your home fits in. Consider its location, its size and layout, and its condition. Your price may land a little higher or a little lower than the average rent, depending on how it looks and whether tenants will find it appealing.
Remember that while earning the highest possible rent is certainly a worthy goal, you don’t want your rental home to languish through an expensive vacancy. You want to get a good tenant in place as quickly as you can so rent can begin coming in. If you know, for example, that you can earn $1,250 on your rental home, consider listing your home for rent at $1,200. It may seem like you’re losing $50 a month, but if you can rent that property within days instead of weeks, you’ve already earned more money than you would have if you listed it at $1,250 and waited an extra month to get a tenant moved in.
Competitive pricing increases what you earn in the long term.
Consider Upgrades to Drive Up Price
If you’re worried that your rental home isn’t competitive and that you won’t be able to get the price you want, consider making some updates and upgrades that will increase its rental value. These do not have to be expensive renovations. Simple improvements, such as fresh paint, new floors, and even updated fixtures and faucets can have a big impact. Install some tile backsplash in the kitchen. Increase your exterior lighting. Change the small details such as switch plates and drawer knobs. Increase your curb appeal with a freshly painted front door and a little landscaping.
Cost-effective upgrades will increase what you earn in rent. These improvements will also make your property more competitive with Indianapolis tenants.
These are some general suggestions for pricing your property competitively. We can make some recommendations specific to your home if you contact us at Red Door Property Management.