Striking the Balance: How to Correctly Price Your Tampa Bay Rental Property - Article BannerRental property pricing can sometimes feel frustrating, especially if you have a specific idea in your head about what you want to charge for your rental and you don’t have access to reliable market data that tells you what competing properties are renting for. 

The market is also changing frequently. What you can set your rent at today might be different from what you can set your rent at next week or next month. 

We understand the desire of investors to make money from their rental properties. To do this, you have to balance your asking price with your desire to attract and retain good tenants. 

You want to charge enough rent to cover your expenses and still turn a profit, but you also have to remember that cash flow isn’t the only way to make money with real estate investments. As Tampa Bay property managers, we understand the market, the competition, and the needs of our investors. We also follow the shifting trends and the changing tenant demands. 

Today we’re sharing some tips on how to strike a balance and price your Tampa property competitively, accurately, and profitably. 

Conduct Your Market and Neighborhood Research

You need to research the market to understand the local rental values as well as the competition.  Take a look at other rental properties in your area to get an idea of their size, amenities, and rental price. You’ll also want to know how long these competing properties are on the market before they’re rented. Longer vacancies are expensive. A higher rental price isn’t always worth the wait of finding a great resident who is willing to pay your high rent. A good way to think about this is that every 5 weeks your property is vacant is a 10% reduction in your annual income. So chose your rental price to find a good renter quickly.

Accessing good data is an important part of pricing your property effectively. You don’t want to limit yourself to the rental values you find on Zillow or Zumper. Talk to a Tampa property manager when you’re establishing a price if you want to be accurate and profitable. We collect reliable data that reflects the current market and the trends in pricing. Our analytics and insights allow us to be precise, and our recommended prices will ensure you maximize your earnings while quickly getting your property occupied with a well-qualified tenant. 

Consider Your Location

Real estate is hyper-local. The rental values for your property in South Tampa will be far different from those in Riverview. There’s a lot of diversity in Tampa Bay, and each region and neighborhood will command different rental prices. The location and the zip code of your rental property can have a significant impact on the rental price. If your rental is located in an area with a high cost of living, along Bayshore Boulevard or maybe on Davis Islands, you can charge higher rent prices. If it’s located in an area with a lower cost of living, such as Tampa Heights or Seffner, you’ll probably need to lower the rent price accordingly.

Understand your location and what it means for the tenants you will attract. When your property is close to good schools, restaurants, grocery stores, and opportunities for recreation and entertainment, you’ll command higher rents than you will with a property that’s in a remote area or otherwise difficult to reach.

Consider Tampa Bay Rental Property Condition 

There’s not much you can do about your location. And, you can’t control the real estate and the rental markets. 

But, you do have control over the condition of your property. You can manage how it looks and whether it’s attractive to good tenants. You can increase its rental value by making smart renovations and cost-effective improvements. Or, you can decrease its value by settling for aging appliances and deteriorating floors. 

A well-maintained property will certainly rent for more than a property that’s falling to pieces. Take the time to evaluate whether it’s time for new paint, fresh carpet, or even hard surface flooring. Does your landscaping need an update? 

When you make improvements, you set yourself up to collect higher rents. For example, tenants will be willing to pay more for kitchens with stainless steel, energy-efficient appliances and this causes your rental value to go up. 

Be willing to invest in upgrades. Even simple fixture replacements can make a big difference and make a home look more modern. 

Track Marketing Results and Stay Flexible

You’ll want to remember that your rental price isn’t cast in stone. You can and should review and adjust your rental prices as needed. If you’re having trouble finding tenants or your property is experiencing high vacancy rates, it may be time to reassess your rental price. When you’re offering a great property, but you just aren’t getting a lot of calls, consider your price. 

Make sure you’re tracking the marketing results that come from your online listing and other advertising efforts. Are people clicking through your listing but not calling or messaging? Do you get a lot of interest, but not a lot of applications? These are the data points you want to follow when you’re thinking about your price and whether it’s in a comfortable range. 

Tampa Property Management and Rental Pricing 

Save MoneyWe always recommend that real estate investors and landlords work with a professional Tampa Bay property manager. It saves you money, it helps you have a more profitable investment experience, and it takes a lot of the guesswork out of things like pricing. 

As we mentioned earlier, we have access to data that can help you make smarter pricing decisions. We also understand the market, the competition you’re likely to face, and the tenants who will ultimately be looking for a home to rent. 

Leverage our experience and our resources. 

Pricing your rental property in the Tampa Bay area requires careful consideration and research. By following these tips that we’ve shared, you can strike the balance between profit and avoiding vacancy. The right pricing will help you attract the right tenants. 

Please don’t hesitate to contact us at Hoffman Realty if you’d like some help with pricing or anything pertaining to property management in Tampa Bay