Before renting out your house in Roseville, you need to know how to establish an accurate and competitive rental value.
Setting your rental price is even more important now than it once was. Unless your property is exempt, the Tenant Protection Act of 2019 established statewide rent control, which means there will be limits on how much you can increase rent when it’s time to renew the lease agreement. You need to make sure you’re starting strong when you price your investment property.
Don’t throw out any estimate when it comes to establishing rental value. You also don’t want to use an arbitrary amount that covers all your own expenses. The market determines how much rent good tenants will pay. Studying the Roseville rental market is the best way to price your property.
Here are some general considerations you’ll want to remember while you’re settling on an asking price for your rental home.
How Much to Charge for Rent: Look at Comparable Properties
A comparative market analysis will help you understand what homes similar to yours are renting for in the current market. Look at comparable properties that are within a two to three block radius from your own rental property.
Knowing the average rent of properties within your area will be beneficial for you when calculating rental value. Just remember to compare your home to those with the same number of bedrooms, bathrooms, and square footage as yours. In addition, be sure the comparable homes are in similar condition, with the same sorts of amenities.
Always make sure you’re using reliable data. While Craigslist can tell you what homes are listed for, there’s no way to know whether they’re actually renting for that amount. The site is also known to be an easy target for scams, so dramatically low prices might not be accurate.
Instead of doing your own research, ask a Roseville property management company for help. Most property managers will provide an analysis of your rental property based on data that’s collected on listing price, vacancy days, and other information. You’ll get a more accurate price range.
Location Impacts What You Can Charge in Rent
Rents will be higher or lower depending on the location of a property. Fortunately for homeowners in Roseville, there’s not a huge difference across the board for one side of town versus the other.
Tenants will always pay more for a rental home that’s close to parks, shopping, schools and restaurants. There’s also a trend towards walkable neighborhoods lately. In Roseville, there are only slight changes between what you can charge for a home in East, West and Central Roseville.
Here’s an example. West Roseville has newer subdivisions which will sometimes draw a little bit more in rent than homes in older Central Roseville neighborhoods. However, it really all comes down to what a tenant is looking for.
Property Condition Impacts Rental Home Pricing in Roseville
While you cannot control the Roseville rental market and how it’s performing, you do have some control over the condition of your rental property. This also influences how much you can charge in rent. Make sure the condition is outstanding. Paint the walls, upgrade your appliances, and make sure the floors are clean. Well-maintained homes will always rent for more money than homes that are in various stages of deteriorating.
If you’re competitive and right in line with other homes in your particular neighborhood, you should have a considerably low vacancy rate. The essentials like location, amenities and size will all help when you make your final decision for rent value.
We can help you accurately price your rental property. If you would like an analysis or additional advice, please contact us at Action Properties.