Establishing a competitive rental price will help you rent your property quickly to some of the best-qualified residents in St. Louis. This is an important strategy for your current cash flow projections as well as your long term returns.
Rental value depends on a number of factors. As you try to decide how much to charge for your St. Louis rental property, consider the following factors:
- Market strength
- Property location
- Property condition
All of these things impact how much you can earn and how long it will take to rent your home.
Evaluating the St. Louis Rental Market
Before you price your rental property, you need to know how strong the rental market is. You’ll need to figure out if there’s a lot of competition for rental properties like yours or if the market is flooded with inventory and therefore competitive for owners who are seeking good residents. You’ll need to consider the time of year and whether a lot of residents are looking for homes, and you’ll have to factor in the overall strength of the resident pool.
Market conditions are the single largest factor in determining how much you can charge for rent. You might have heard that someone rented out a property like yours for $1,500 last year. But, things change quickly, and the economy has shifted pretty dramatically since the pandemic arrived, so you might have to settle for a $1,200 per month price tag now.
If you underprice your property, you’ll lose money due to the time it will take for that price to go up to market standards. If you overprice your property, you’ll also lose money because it will remain vacant longer. Good residents will not pay more than they have to, so make sure you’re competitive.
Property Location and Rental Value
Everyone knows that location is important when you’re buying and selling property. It’s important in the rental market, too. You’ll need to evaluate where your property is located and determine whether geography will help or hurt your rental value. If you’re in a great school district and a desirable neighborhood, you can probably charge a little more than you could if your property is in a remote location and not close to any commuter routes, shopping centers, or conveniences.
Well-Maintained Properties Rent for More
Property condition is the one pricing factor that you can really control. It’s totally up to you how modern your home is and how well it shows. Make it count.
Good St. Louis residents will be willing to pay more for attractive properties with upgrades and updates. Make sure everything in your property works well, and make sure it’s appealing to those high-quality residents. Invest a little money in minor upgrades. This doesn’t mean you need to rip out your kitchen or add a bedroom. But, a fresh coat of paint, new hard surface floors, or even shiny brass hardware fixtures on drawers and cupboards can make a huge difference. Spruce up your landscaping. Provide a modern, functional home if you want to increase the rent you collect.
Attaching the right rental price to your investment property is an important part of the leasing process. It affects the type of residents you attract and it has huge implications for your short-term rental income and your long-term returns. Make sure you get it right.
Contact us at AMOSO Properties if you need any help pricing your property. We understand the St. Louis rental market well, and we can ensure your rental value is both competitive and profitable.