Charging accurate market rent for your rental properties in Columbus is important to your investment success for a few key reasons:
- It helps you attract good quality tenants
- It helps keep turnover rates low
- It’s an important factor in improving NOI
Often newbie property owners make the mistake of overcharging because they think it will help them secure “good” tenants. In fact, the opposite is true. Why? Because discerning, high-quality tenants are going to pay the absolute minimum rent for a high-quality space that fits their budget and needs. They know the market and have no intention of paying more for a property when they can get a similar one for less down the block.
On the other hand, people who are willing to pay more can often become bad tenants. These are the people who may have a criminal history or an eviction on their record, and 90 percent of landlords won’t rent to them at all. They may be willing to pay almost whatever it takes just to sign a lease and be done with it.
With all that said, how do you go about accurately establishing a fair market rent for your unit(s) in Central Ohio? Fortunately, it’s not a guessing game and it certainly doesn’t have to be hard – it’s all about the data.
Tips for Calculating Market Rent for Your Columbus Property
You’ll want to do as the data says when it comes to setting fair and accurate rent rates for your single-family home, duplex or other multifamily property in Columbus, Ohio. If you need help gathering data, talk to a local property management company that is familiar with current competitive rates for properties similar to yours.
It’s important that the data you use to compare is in the same neighborhood as yours and has similar specs and features. To start:
- Find at least 3 comparable properties in your neighborhood. They should have the same number of bedrooms and bathrooms and have roughly the same square footage.
- Calculate the average rent for these comparable properties. Keep in mind that if these units are sitting vacant, these are rates that are not being rented. This could be a sign that they could be priced too high.
- Lastly, consider unique factors that affect your property – Has your unit been recently renovated or offer an enviable view? Things like the property’s condition and its amenities will allow you to adjust rent up or down as appropriate.
Setting your rent rates in line with market conditions improves your likelihood of securing quality tenants who are more likely to stick around because they trust that they’re paying a fair price. This also is good for your overall investment success as it will help improve your net operating income.
To learn more about owning rental property and setting rent rates in Central Ohio, get in touch with us at RL Property Management. We’ve been professionally managing rental properties in the greater Franklin County area for more than a decade and have the expertise and professionalism to help you get the most out of your strategic investment.