It’s best to determine a rental price that’s balanced enough to attract prospective tenants quickly, while providing you with the best return on your investment. To achieve this balance, you’ll need to consider several factors.
Setting the rental price of your Joplin income property is a big decision. The right rental price affects the time it will take to secure a tenant, sign a lease agreement and begin to profit on your investment.
As you can see, the right rental price plays a major role in the success of your investment. In this article, we’ll discuss the most important factors to consider when pricing your Joplin home to rent.
Assess Comparable Properties
One of the best ways to determine the rental price of your income property is by assessing comparable properties. A comparable property is one that is similar to your property in several ways, such as:
Similar Features
A comparable property is one that has similar features to your property. Such features may include the size in square footage, the number of bedrooms and bathrooms, as well as the age of the home.
Location
Certain locations tend to be more desirable to tenants than others. From one neighborhood to another, rental prices can greatly vary. Always try to find comparable homes that are located in the same neighborhood as your rental.
Type of Rental
Rent prices can vary depending on the type of property you’re leasing. For instance, a single family home tends to fetch a higher rental price than a multi-family property. This is because single family units tend to offer more space and additional features such as a garage, a patio or backyard.
Search Online Listings
You’re likely to find comparable properties by searching online listing platforms like Zillow, Trulia and Hotpads. Look for similar properties that are in close proximity and check how long they’ve been listed. You can often filter searches to include the same number of bedroom and bathrooms as your rental property.
Some platforms allow you to include whether a rental allows pets, or offers amenities like a dishwasher or a swimming pool. You should also pay attention to properties that rent quickly and ones that reduce their prices to garner interest.
Seek the Opinion of a Property Management Company
Find a Joplin property management company and ask for their opinion. Professional property management companies have access to information that you may not have access to.
At Pro X Property Management we’re happy to advise you any questions or concerns you may have. And we're always available to discuss the performance of properties in your area, including which properties rented quickly, as well as properties still on the market.
Based on our knowledge and expertise, we can inform our clients based on their particular needs.
Get to Know the Neighborhood
Take a walk around the neighborhood. It’s a great way to compare other rental properties to yours. When you come across a property that appears similar, see if you can talk with the landlord about the interest they’ve had from renters in the area. When you decide to be a landlord it's smart to become as knowledgable as you can.
While you’re there, take note of the neighborhood’s amenities.
Nestled in the southwest corner of Missouri, Joplin offers 22 parks, Joplin Athletic Complex, Joe Becker Stadium and three aquatic centers.
The city maintains 933 acres of park land! In and around Joplin, residences have access to walking, hiking and biking trails.
Consider the Features of Your Home to Rent
Your rental prices should vary depending on the features your property offers prospective tenants. For example, the rental price of a one bedroom versus a two bedroom property should reflect the difference in living space. Additional features you may also consider include:
The view
Properties with a good view tend to be more desirable. After all, a property with a view of the sunset or a garden can help your tenant unwind after a long day.
Property upgrades
Have you updated fixtures or appliances? Rental properties with upgrades tend to attract more interest from tenants. Upgrades reflect the care and the quality of the property.
The square footage
A property with a large square footage should be priced higher than a smaller property in the same area. Families tend to need more space and additional bedrooms are a great selling feature.
Storage space
Tenants place high value on storage spaces such as built-in closets and shelves in the home. But also consider any storage space outside of the home. Does the property offer a garage or a backyard with a shed?
Consider the Level of Interest in the Property
A good way to find out if you’ve set the right price for your rental property is by assessing the level of interest from renters. If you’re receiving calls from prospective tenants to ask for a showing of the home then it's a good sign that the prices are suitable.
If you haven't received as much interest as you'd like, you may need to reassess the rental price that you’ve set.
Set the Rent According to Your Objectives
As a rule of thumb, the rental price should be able to cover the expenses of the property. Even though individuals may have different goals in property ownership, a rental investment should be able to sustain itself.
This means that the income from your rental property should cover expenses such as the mortgage, maintenance costs and temporarily vacant properties, as well as providing you with additional monthly revenue.
Adjust the Price According to Market Demand
After setting your rental price, be sure to adjust it to reflect any changing market conditions. If the demand for rentals increases, you should also increase your rental prices.
Market conditions can be affected by multiple factors, such as population change, economic conditions, employment opportunities and new facilities.
For example, an increase in population is often reflected in a higher demand for housing. As the demand keeps growing, so do rental prices. Landlords should keep track of such changes and adjust their rental prices accordingly. Over all, Missouri is experiencing an upward trend in rental prices.
Final Thoughts
When setting the price for your rental property, you need to consider certain factors such as comparable properties and the available amenities. By doing so, you’ll determine a balanced price that will attract prospective tenants while creating a reliable source of income for you.
You should also consistently review rental rates in the area to ensure that your current rental price reflects shifting market conditions.
At Pro X Property Management, we provide end-to-end services that aim to make your rental investment flourish. Our property managers have the knowledge and experience to set the right rental price for your property and maximize the return on your investment.
Call us today for more information on our services in Joplin, MO and Southeast Kansas.
