Updated September 17, 2021
There are two goals of any property manager or owner.
• You want to get highly qualified renters in your rental space.
• You want to be sure that you used the right rent estimate.
There are likely thousands, if not more property managers and owners that are undercharging their renters.
The fact is that property reports can only deliver so much information. A rental meter that is part of a rental listing app can provide much more focused data to help you set your rental price without undercharging your renters.
Are You Charging Your Tenants The Right Rental Rate?
What Most Landlords Do to Set Rent Rates.
If you're a self-managing landlord, you often pick a rate that will give you a little cash flow, while covering your mortgage, insurance, and taxes. You may also look at local listings or in the newspaper to see what other landlords are charging. The problem comes when you get comfortable with a rate but don't realize you could be charging more, or maybe you're not reaching the right tenants because you are charging too much.
When you self-manage, chasing down rent each month can be a difficult process. By having a more accurate rental rate, you will attract the tenant who can pay that amount. This balance will earn you more cash flow and less stress.
Property Management Companies Have a Little Advantage in Setting Rental Rates.
Property management companies have a small segment within the properties they manage to test market rents and analyze what's high or low. This gives them a slight advantage. There is still a small problem with this approach. They are only looking at a small subset of properties in one neighborhood or city. Property management companies can earn more and find more qualified tenants by narrowing their rates and tenant pool by finding a more accurate rental rate by using the right tools.
There is a Balance
Finding the perfect balance between not undercharging your renters and not overcharging yourself out of the market can be difficult without the right rent prediction tool.
Of course, no one wants to see their property sitting on the market unleased for months, but on the other hand, shortchanging yourself by not charging enough can also be just as tragic.
Data is king when it comes to ensuring that your rent is in line with what is happening in the rest of the area. Unfortunately, managing all the rent statistics by hand can be a long, daunting process. State of the art rental property apps can take the workload off your shoulders without sacrificing any of the quality data.
A cutting-edge rent comparison analysis from a rent estimator tool is often far more accurate than information gathered by hand and analyzed. It is not only easier, but it is also a more accurate method of finding that balance.
When you have the right rental property app working for you, you can accomplish more with better results. Information at your fingertips can help you to make informed decisions in a fraction of the time. It can also help you to manage your properties more accurately. It is a win-win situation.
Instead of spending hours running numbers to ensure you are getting the best value out of your rental properties, you can focus on core business requirements. You can spend more time providing tenant services, marketing your property, and more.
The right rental app will ensure that you are not undercharging your renters and do so much more. Don't waste any more time crunching numbers get it all done for you with an easy to use an app.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.