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Tips for Setting Rental Prices and Minimizing Vacancies

Setting Rental Prices

Are you thinking about renting out your property but aren’t quite sure where to start? If you’re new at renting your home, there could be a lot you don’t know, and that ignorance could make being a landlord much more difficult. Don’t worry; these tips below can help you understand things like how to set rental prices, eliminate downtime without tenants, and what to look out for as a landlord:

Learn how to find great tenants

If you want to get the kind of passive income you’re looking for and keep your property from being vacant, the secret is to find stellar tenants. However, that is often easier said than done.

If you want to be sure to rent out your property to reliable people, it’s important to use a tenant verification service. Screening potential tenants can help you avoid renting out to people who have caused damage to properties, don’t have good credit, are often late on rent, and so much more. Minimizing vacancies means renting to people that you won’t have to evict.

Work with a property manager

Another thing to consider as you hope to keep your space rented out continuously is to work with a property manager. If you’re running a business and find yourself a bit too busy to worry about all the ins and outs of renting out a property, a professional property manager can help to make it easy for you.

When you hire a property manager that you can trust, you can be sure that your home is in good hands and also ensure your tenants are taken care of. From handling the changing of tenants to taking care of rent payments and property repairs, a professional can keep you making money from your investment while you stay on top of everything else in your busy life. They can also help you determine the best prices for your space, as an experienced property manager knows the market well. The last thing that you want to do is overprice your home and not be able to rent it out.

Honor great tenants

If you have great tenants, it’s a good idea to do what you can to keep them. Perhaps you only increase the rental price slightly, even when comparable rental property prices are shooting up. Flexibility with rent payments could also help boost your relationship and respect with your good tenants.

While these things aren’t something you’d want to do for just anyone, if you have tenants who make it easy to trust that your property is in good hands, consider holding on to them however you can.

Make sure to provide long-term term options

Another thing to consider as you strive to minimize vacancies is that longer lease terms can make it easier. While there is a downside to longer lease terms if you find yourself with a tenant that isn’t treating your space well, the benefits of renting out long term can ensure your property is always rented out.

Whether it’s a year-long lease or you also have an option for a two-year lease with a locked-in price for worthwhile tenants, it’s a good idea to sign a lease that is longer than shorter when it comes to avoiding vacancies. However, there are some places where short-term rentals can make you much more money, such as in sought-out cities or areas with beautiful beaches or natural wonders.

Setting Rental Prices

In Conclusion

As you seek to invest in real estate and rent properties, take time to learn the best practices to benefit from life as a landlord. These tips above can help you navigate life as a rental property owner.