Your goal as a California City real estate investor is to increase the amount of income you earn on your rental property. To do this, you have to maximize the amount of rent you collect on a consistent and recurring basis.
When it comes to pricing your property, there are several factors that are outside of your control. No one can do too much about the market and the competition. And, the market largely dictates how much your property is worth to qualified tenants. You never know how strong the market is going to be during any given month, quarter, or year. You can’t control the amount of competition you have, and you’ll rarely be able to influence the local economic factors.
There’s plenty you
can control when it comes to what you earn, however. Focus on those things that are within your control and take a few strategic steps to ensure you’re maximizing the amount you earn on your California City rental property.
We recommend you focus on two things: pricing and marketing. Here are some tips on how to earn more by pricing your property competitively and marketing that property strategically.
Vacancy costs are tremendous, and that’s why you want to price your California City rental home competitively for the market.
The right pricing
attracts the right tenants, and good tenants
increase your rental value and your ROI. Those well-qualified renters have a lot of options when it comes to choosing a home, and helping them decide to pick your property over all the others requires a well-informed pricing strategy.
While you want to be competitive, you don’t want to price your property too low. That will only leave you earning less than you should be, and it may be hard to catch up to market value without dramatic rental increases later. If your property is included in rent control laws, you’ll have an even more difficult time reaching market rents.
Pricing too high, however, will only extend your vacancy time. You lose money every week and every month that your property is unoccupied.
Price your property to maximize your rental income in these ways:
Start with a thorough comparative market analysis. This is an important first step when you’re pricing your rental property. Take a close look at the California City rental market and get an idea of what other owners are charging for properties like yours. You could have a gorgeous, well-maintained, and updated home. But, it’s not going to rent for a lot more than what similar homes are also renting for. The best way to avoid mistakes in the pricing process is to have a clear understanding of what the rental market will bear.
Online rental sites such as Zillow or Zumper can be helpful when you’re researching what homes in your area are listed for. Most of this data is pulled from the MLS or from general listings. Just make sure you’re comparing properties that are similar to yours. And, make sure the rental rates are current. If you’re looking at a property that was listed three months ago and is still vacant, the price might have something to do with it.
The market isn’t the only thing that impacts your rental price. Location plays a huge role, too. High quality tenants want to live in desirable neighborhoods close to shopping, restaurants, entertainment, and commuter routes. When your property is well-located, you can charge more than you can when it’s very remote or stuck in a place where there’s a ton of traffic and impossible parking. Good school districts raise your rental value.
Improving the appeal of your rental home will also help you set a profitable rental price. Tenants are willing to pay more for well-maintained, attractive homes. There’s more to think about than simply maintaining your home. Make sure it’s updated and upgraded between tenants. You should invest in fresh paint, new floors if the carpet is worn and stained, shiny fixtures and hardware, and better lighting.
Homes that allow pets earn more rent. If you want to maximize what you earn, think about allowing pets into your property. Your monthly rent increases when you charge pet rent. You can also charge a pet fee. You also have lower vacancy losses and higher tenant retention rates.
Allowing pets into your property can seem like a risk - they tend to be messy and sometimes there’s extra damage, especially with large dogs. However, the damage a pet can potentially cause rarely exceeds the pet fee you’ll collect.
When you want to maximize income, you have to maximize your pricing. Get help from a
California City property management company if you’re unsure about where your rental rate should land. We analyze data every day, and we know exactly what residents are willing to pay and not pay when it comes to choosing a home.
A good marketing strategy will help you advertise your California City rental property effectively, which is the best way to get it leased quickly to well-qualified tenants. If you’re not marketing correctly, you’re going to have to deal with a longer vacancy period. That’s never good, and it works against your goal of maximizing what you earn.
There are a lot of ways to market a rental property.
Some owners are satisfied putting up a For Rent yard sign and others will saturate their social media platforms with rental listings. The goal of marketing is to reach the largest possible pool of qualified tenants. To do that, you need to use several different strategies that
involve technology and responsive customer service.
Here are some of the best ways you can market and advertise your California City rental home with the goal of earning more rental income on good tenants and fast leasing periods.
Anyone looking for a new rental home will scroll through the photos in your listing before they read your carefully written description. Make sure you keep them interested in your home by providing high-quality, detailed photos. Don’t post one or two shots; include as many as you can. A good listing will include pictures that reflect the front of the property as well as any outdoor space. There should be a picture of the kitchen, the living area, and the bedrooms and bathrooms. Include any special details such as a backsplash behind the sinks or a walk-in closet.
Some owners and property managers will hire a professional photographer. That is a great investment to make, but it’s not always necessary. As long as you’re taking good, clear shots with plenty of light and all the best angles, you’re doing fine. Camera phones are doing wonders these days, and they can capture a variety of angles and provide some great shading.
Clean the property up before you start taking marketing photos. No one wants to see debris on the countertops or clutter on the floors..
A great property description is the next step in your marketing plan, and you want to make sure it matches your vibrant photos. Every word counts because the narrative needs to be informative but not too long. Prospective tenants won’t be interested in reading long paragraphs and personal stories. They want to know the basics. Include important information such as the rental amount and the security deposit amount.
Always be mindful of fair housing language. Don’t say things in your listing that could seem discriminatory. It’s no longer acceptable, for example, to advertise that your home is not suitable for Section 8 tenants. It violates state
fair housing laws.
Online advertising is going to generate the most interest in your California City rental property. You want your listing to appear on sites like Zillow, Zumper, Rentals.com, HotPads, Trulia, and Rent Café. When you don’t have property management software that can quickly syndicate your listing, you might find it time-consuming to place your ad on every single rental site. Try to access some technology that will allow you to post the ad in one place and then have it syndicated across a broad network of listing sites. A California City property manager can help with this and keep your marketing costs down.
When you want to maximize what you’re earning by using smart marketing strategies, don’t forget to be responsive when calls and messages start rolling in. You have to pick up the phone and answer emails. Do a bit of pre-screening, answer the questions of prospective applicants, and schedule showings. Don’t give tenants a reason to cross you off the list and move on to the next property. Be responsive and accessible. The best marketing plan in the world won’t help much if you refuse to engage with the people who want to see your home.
When you’re thinking about ways to maximize what you earn, consider how you price your property and what you do when it’s time to market the home.
We can help. Please contact us at JBL & Associates for any help with pricing, marketing, or any matter pertaining to property management in California City.
760-373-1800 Office
