Mastering Market Rent: How To Price Your Rental Property Right

By Benjamin Ficker

Benjamin Ficker is a Multifamily Investment Broker with KW Commercial. With a two-decade career, he delivers unparalleled value and personalized service to clients, earning trust as a reliable advisor. His broad spectrum of experience has led to success for hundreds of his clients.

As a landlord, staying informed about market rent levels is crucial to running a successful rental property business. Many landlords believe their rents are competitive, but they might be unaware that they are falling behind the actual market rates. Today, we’ll explore the essential steps to determine the true market rent for your rental property.

Knowing the competition’s asking rents is just one side of the equation. To establish accurate market rent levels, you must also consider what tenants are currently paying in your specific micro-market. Avoid relying on generalized rent averages for larger geographic areas like counties or cities, as they may not accurately reflect your property’s value.

While popular listing websites like Craigslist, Zillow, and Rent.com can provide some insights, they are not always reliable and may be filled with scams. To gain a deeper understanding of the market, consider using tools like Rentometer or RentRange, but keep in mind that their data may have limitations.

The most effective way to determine the right market rent for your property is to seek a professional assessment. Have a real estate expert visit your property, assess its amenities, and identify areas for additional income potential. This detailed analysis will provide valuable data to help you price your rental competitively.

Apart from this informative email newsletter, there are other valuable resources you should be aware of when establishing market rent levels. Multifamily Northwest releases a bi-annual newsletter with a rent survey of the Portland metro area, breaking it down into micro-units for more accurate insights. Additionally, Patrick Berry, an apartment appraisal specialist with Berry and Associates, offers quarterly newsletters with valuable market insights.

Remember, your property’s value is directly linked to its income potential. Even if you’re not planning to sell immediately, keeping your rents up to market levels is crucial to securing a strong financial position for the future. Market fluctuations can impact your real estate plans, making it essential to stay ahead of the curve.

If you’re considering changes in the next 3 to 5 years, now is the perfect time to take action and get your rents up to market levels. This proactive approach will give you a competitive edge and align your property with the current market conditions.

Don’t hesitate to reach out and schedule a time to talk about your real estate goals. Our team is here to provide personalized guidance and help you navigate the dynamic real estate market successfully. Call or email us anytime so we can get started on working together to ensure your property reaches its full potential!