How to Set Rental Price: Your Quick Guide

how to set rental price

Real estate is one of the most efficient ways to cultivate financial freedom. More specifically, owning rental properties can quickly build a significant amount of passive income.

But, not everybody knows how much they should charge the tenants for their monthly rent. Let’s explore everything you need to know about how to set rental price for your properties.

Take a Look at Similar Properties in the Area

One of the most efficient ways to get a good idea of what you should charge as a landlord is to take a look at similar properties in your area. A quick Google search that looks into your local rental rates can go a long way when help determine your price.

Additionally, you could also ask any rental property owners you know in the area what they think you should charge.

How Are the Amenities?

More often than not, the primary index that property owners use to determine rental payments is the square footage of the home. In general, larger homes will always cost more to rent than smaller homes.

But, you should also consider the home’s amenities. Upgraded hardware, new appliances, and whether or not your property is furnished are all factors to consider.

If you own a rental property that has a dedicated parking space and resides within a gated community, you can also integrate this into your rental price.

How Favorable Is Your Property in the Market?

Regardless of the quality of your property, there are certain factors that make a home more favorable in the local market.

The proximity to reputable schools or public transportation, for example, are common attributes that tenants look for. The same can be said about having quick access to your city’s downtown area.

You can likely charge more rent for a smaller property within walking distance of high-quality stores, restaurants, etc. compared to a larger home in a rural area.

Consider the Season

Depending on the region you live in, some seasons are more popular than others when it comes to renting.

In general, summer is the time of year where tenants express the most interest in rental properties. This is typically due to the fact that many people strive to avoid moving during colder months.

Additionally, it’s far easier for families to relocate during the summer since school isn’t in session. As a result, you should be looking to charge more for rent during the summer compared to the winter.

Understanding How to Set Rental Price Seem Overwhelming

The above information, though, will ensure that you choose an amount that leaves both parties satisfied. From here, the answer to how to set rental price for your properties will allow you to catapult your passive income to new heights.

Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.

5 Tips for Dealing With Problematic Tenants on Your Rental Property

tenant

Rental properties are a great investment. Maintaining those properties and being an ideal landlord takes a lot of work, however. Although your rental properties could be a great additional source of income, bad rental tenants can ruin it all. 

When you’re faced with a tenant that has trouble following the rental agreement, you could have a disaster on your hands. To ensure your rental properties stay in great condition and that all tenant issues are kept to a minimum, you’ll want to continue reading below. 

Here’s everything you need to know about dealing with problematic tenants!

1. Maintain Written Records

You should have procedures and policies for how to deal with specific issues that may arise. Make sure to have these policies written down and have the tenant sign them, stating that they agree with these policies. 

When an issue does arise, make sure to have copies of all warnings and notices or other forms of communication. Keep records of the dates and times these warnings, notices, or other types of communication were sent out and the reason why. 

2. Stay Firm on All Issues

When you put a certain policy or procedure in place, you need to stay firm on them. If you allow the tenant to pay their rent late without a penalty once, then they’ll expect to be able to pay late again without penalties or fees. 

Deal with an issue the same way each time to avoid any confusion. 

3. Schedule a Meeting to Discuss a Solution

When an issue with a tenant is ongoing and a simple notice or warning isn’t correcting the problem, then consider scheduling a meeting with the tenant to discuss a solution. If the tenant shows up to the meeting, then there might be hope in salvaging the tenant/landlord relationship.

Discuss the issues with the tenant face-to-face and learn if the tenant is willing to make the necessary changes or not. Once you find a solution, you might want to create a contract stating that the tenant will make these changes by a certain date and have them sign. 

4. Begin an Eviction Process 

Sadly, in some cases, there is no way to keep a healthy tenant/landlord relationship. This happens when the tenant is unwilling to follow all procedures and policies required of them and refuses to make any changes. When this happens, it might be best to begin the eviction process.

Before sending out an eviction notice, make sure to know the eviction local laws and landlord rights to ensure you do everything legally. Keep in mind that eviction is a process that’s often complex. Legal help might be in your best interest.

5. Hire a Property Manager

One of the best ways to keep a balance between yourself and your tenants is to hire a property manager. A professional property manager will know how to handle matters with tenants legally. 

You’ll have more free time with rental management there to handle the majority of the problems, and you can have some peace of mind as well. 

Need Help Bringing in More Than One Tenant

When you’re faced with a tenant who just won’t seem to follow the necessary rules and regulations for living in your rental property, it’s time to hire a property manager. Let a property manager do the hard work for you.

Find an agent today to help you place tenants in all your properties!

Property Management 101: Everything You Need To Know

property management 101

Property management isn’t as simple as finding tenants and executing contracts. A good property manager or landlord takes care of their tenants, anticipates needs, and deals with problems that arise in a timely and efficient manner.

This is often a challenge, as unforeseen situations frequently arise with both properties and tenants.

However, we’ve got everything you need to know to be a successful property manager in our property management 101 guide. Keep reading to learn more!

The Dos and Don’ts of Property Management

The single biggest step you can take to become a successful property manager is to become a “Jack of all trades”. Whether it’s commercial or residential property, the individuals and companies who really nail the gig are those who are intimately involved with every aspect of the property.

Be prepared to do everything from bookkeeping to repairs to advertising and learn how to take care of those things you aren’t currently familiar with. Unless you intend on creating different roles for multiple individuals you’ll be working with, you’ll be responsible for everything from securing tenants to keeping the property in good shape and beyond.

Property management includes knowing how to:

  • Balance books and monitor cash flow
  • Manage and keep records relating to tenants
  • Advertise and find the perfect tenant for the space
  • Maintain and repair the property
  • Deal with property inspections
  • Secure professionals to deal with in-depth repairs and issues that arise
  • Communicate with tenants about their responsibilities and needs

Finding the Right Tenants

Finding the right tenant is a skill that will make the rest of your job easier. Getting a good tenant the first time around means a lower turnover on properties and a steady cash flow for the property.

Ask for references, require a deposit to protect your interests, and do a background check on potential tenants. Look for a criminal history or evidence of poor credit and payment history.

Sometimes simply requiring an application fee can go a long way toward weeding out a tenant who isn’t serious and responsible.

Understand the Law

Make sure you’re familiar with the rental laws in your area. Knowing your rights and responsibilities as a landlord or property manager means you’ll be better able to navigate tricky situations with tenants and head off legal complications.

Create a Consistent Process and Procedures

Creating a consistent process from beginning to end of the rental process is key to success. You should have procedures for every step of the process, from application to maintenance to move out, that are easily communicated and followed for every property and tenant.

Work With Tenants

The best property managers know how to work with their tenants to keep them happy and lower turnover. After all, a tenant who sticks around means less advertising and a more steady income stream for the property.

Acing Property Management 101

Are you trying to find the perfect property to start your property management career? Now that you have a crash course in property management 101, it’s time to find the perfect property for you!

Contact eFind Agent today to learn more and find the right property for your needs!

A Quick Guide to Your Landlord Rights and Obligations

landlord rights

Are you one of the 10 to 11 million investor landlords in the United States? Thumbs up!

However, being a landlord is not an easy venture. Dealing with difficult tenants, repairs, maintenance, and possible legal battles can cause anyone to give up being a landlord.

Understanding the landlord rights and obligations will make the job easier. Being prepared and knowing what to expect can erase half the headaches of the job. 

Use this quick guide to make sure you are protected from bigger problems later.

Screening Applicants

You have every right to screen the people who want to live in your rental property. Since there is no probationary period with renting, you want to make sure you have great tenants.

Looking for a great property is tough, and looking for good tenants can be tougher. Some of the things you can screen are their references, background check, credit score, and proof of employment.

Use this information to obtain a tenant you know will be a steady renter with no problems. The fewer turnover you have, the more money you save.

Entering Units

Landlords have every right to enter units, but not without notice. Most states require a minimum 24-hour notice before entering. 

If you want to curry favor with your tenants, give them more than 24 hours before you enter. While state law may require a certain amount of time, the lease you provide may state a few days or even a week.

In the event of a fire or medical emergency, you do not need any notice to remedy a situation.

Security Deposits

Every landlord has the right to collect a security deposit that’s equal to one month’s rent from a tenant. This deposit is used to clean messy apartments after a tenant has left. It can also be used to pay utility bills the tenant forgot when they moved.

If a tenant leaves the apartment the way they got it and there are no outstanding bills, it’s your obligation to return the money to the renter.

In fact, if you plan to use any of the deposit from the tenant, you need to have a good reason. Failure to outline the reasons in writing could result in a lawsuit.

Prolonged Absences

A landlord has every right to go on vacation or take a leave of absence. All the landlord has to do is appoint a property agent. 

This agent will be acting on your behalf and collecting rent. They should also be knowledgeable of the rules and expectations of being a landlord. If they do something wrong, it could come back on you during court.

Each state will have different laws regarding prolonged absences. A good idea is to ask another landlord to cover for you. In return, you can pay him a small fee or cover for them when they leave.

Be Familiar With Landlord Rights and Responsibilities

Being a great landlord means you are protecting yourself and your tenants. Knowing landlord rights and obligations will help you fulfill the role and make your investment profitable.

This quick guide can be the difference between having a successful rental investment and running for the exit as fast as you can.

If you’re interested in learning more about property management, keep reading our blog!

How Your Property Management Firm Should Handle the COVID-19 Pandemic

property management firm

Experts have predicted that the COVID-19 pandemic might result in the loss of three million American jobs before the summer. Clearly, these are tough economic times.

If you’re in charge of a property management firm, these may be fearful times for you. However, there are certain steps you can take to give yourself the best chance of survival.

Read on as we share some key advice for property management firms during the pandemic.

Keeping Your Property Management Firm Afloat During the Coming Storm

An issue like COVID-19 poses unique challenges to the property management sector. Everyday tasks like maintaining properties and liaising with occupants have been made much more difficult by social distancing requirements. 

With this in mind, the following are some measures that you can take to make life easier for yourself at this time.

Keep an Eye on CDC Recommendations

The Center for Disease Control and Prevention (CDC) has been at the epicenter of this outbreak since it began. Their recommendations are vital for businesses and individuals alike.

The organization posts regular updates on hygiene best practices and preventative measures. You should communicate these to tenants as you receive them.

If you manage several properties in an area (in an apartment block, for example) it might be a good idea to place notices about these practices and measures in a public area in the vicinity. For example, you could put up a flyer about hand-washing practices in the elevator.

Focus on Communication

For landlords, communication is key. You need to be able to make sure that tenants are meeting their obligations and to inspect and address any issue that a tenant reports to you.

Doing this in person is now impossible in many cases. However, with recent advances in communication technology, there is no reason why you shouldn’t be able to maintain interaction with occupants.

Let tenants know that you can be reached on the phone at all times. If there is an issue with the property that needs inspection, tell them to show you it over a video call.

Remember, essential service providers like plumbers and electricians are still working during the crisis. If required, they can make a call to your property.

Keep on Top of Your Legal Obligations

There has been a lot of confusion about the legal obligations surrounding licenses, leases, and other contracts in light of this pandemic. As a property manager, it is your duty to keep abreast of all relevant legal developments. 

For instance, if supply chains for an ongoing construction project break down, it is not clear who will bear the liability for this. You should consult with a lawyer to make sure your interests are protected.

Getting Through COVID-19 Together

No business person wants to see something like COVID-19 coming. If you own a property management firm, you’re probably no different.

However, by taking an intelligent approach, property managers can weather this storm and put themselves in a good position to recover when it’s all over.

If you’re looking for a property agent, or you have a question about the services we provide, contact us today.