Pricing your San Francisco rental property correctly is important to avoiding long vacancies and attracting high quality tenants.
A price that’s too low means you’re losing money every month in the rent you could be collecting. Pricing your home too high is just as expensive; it means your home will be vacant longer, and that lost income can never be recovered.
We have a few steps you can take to accurately price your San Francisco rental home, and we’re sharing those with you today.
Step 1: Provide a Well-Maintained Property
To achieve the maximum rental value for your San Francisco rental property, make sure it’s attractive, functional, and welcoming. The best tenants in San Francisco will look for homes that are well-maintained and clean. They want desirable neighborhoods, great amenities, and a positive rental experience.
Before you think about pricing your property, clean it and take care of any repairs and maintenance issues – even minor and cosmetic things. Fresh paint, clean floors, and updated lighting will go a long way. Make a few inexpensive upgrades that will get the attention of great tenants. Granite counters are probably not necessary, but an attractive backsplash in a small kitchen can make a big difference in both pricing and tenant quality.
Step 2: Check Out the San Francisco Rental Market
You need to know the market in order to establish a good rental price for your own property. Take a look at market trends. Consider what similar homes in your area are renting for. Make sure you have access to reliable and accurate data. While sites like Craigslist and Zillow can give you a general estimate of what local homes may be renting for, you need to consider the length of time those properties are on the market. You also want to review rental prices instead of asking prices. There’s a difference.
Step 3: Establish a Competitive Rental Value
Once your property is ready for the market and you have a good idea of what other homes are renting for, you can establish a rental value for your own property. Compare the size, condition, and location of your property to those you’re comparing it to. Take any extra amenities into consideration as well. If you provide a parking space but other properties on the market do not, you can ask a little more. If your property is more remote and not as close to transportation and highways or good schools, you may have to ask a little less.
Step 4: Track Results and Stay Flexible
If your listing is generating a large response from prospective renters, you’re probably in the right price range. If you’re not getting any interest, or people are asking to see the home but not applying, you might want to adjust your price. It’s important to track the results of your marketing so you’ll know where to make those adjustments. Follow up with the tenants who visit your property as well. Ask what they liked and didn’t like. Find out why they decided not to apply.
These are the best steps you can take in accurately pricing your San Francisco rental property. We know the market well and effectively rent out properties all the time, so feel free to contact us at Leading Properties if you have any questions or need any help.