How Would Donald Trump Price Your Tampa Rental Home by Hoffman Realty
One of Donald Trump’s guiding principles in business is, “To know your market,” and if you know your market, you can price your Tampa rental home accordingly. The most important thing to do before buying a rental property is to determine its fair market rent value.
By using market rent as a guide to determine what the rent will be, you will maximize profits without scaring away potential renters. If you set rent too high you’re likely to have a vacant unit. On the other hand, if you set rent too low you lose out financially.
So, how do you determine the market rent?
In order to get the maximum rent possible on your property, you have to research current rental rates of comparable properties in your local Tampa area. Comparable properties are properties which your prospective tenants had most likely considered when looking for a rental. These properties may be located next door to you or two blocks over; either way they will have similarities to your rental home.
Here are five factors that go into making a good comparable property:
- Location: It’s important to remember that rents vary depending on the location of the property. Depending on the area, the demand for rent will either be higher or lower. For example, a 3 bedroom home in the urban core of Tampa like Hyde Park, rents for a different amount then a 3 bedroom home in a suburban community like Riverview.
- School Districts: Good school districts affect property values greatly and ensure consistent demands for rental properties. One example of this is a famous street in Tampa where two school districts divide the homes into two different price brackets. One side is located in an excellent school district; the other is located in what is considered an average school district. Although the homes are similar, their prices are not.
- Size / Amenities: Obviously a 2 bedroom home is going to rent for less than a larger 4 bedroom home, so when comparing properties for rent value, they need to be the same size. Also, if your home has amenities such as a garage or pool, the comparable property should have those as well.
- Condition: Does the property have updated bathrooms, updated kitchen, and modern appliances? Or, are the appliances and fixtures so outdated it looks like you stepped back in time to the 70s? Depending on the condition of your rental home, the comparable properties should be the same.
- What’s included in the rent: If it’s a single-family home, is lawn service included, or do you have to do it yourself? If it’s a condo, are utilities included like water, sewer, trash, cable TV? It’s important to know these things so you so you can adjust appropriately.
Now that you are aware of what comprises a good comparable, you can go to sites like Realtor.com to help you find rental listings from all real estate agents in your area. Site such as Realtor.com allow you an opportunity to find properties most similar to yours. If your property is in the Tampa Bay area, you can also use our website to search for Tampa rental properties too.
In short, if you want to price your rental home like Donald Trump, know your market to help price your property accordingly and get the most profit from your rental.
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