As a property manager, understanding just how to price your rentals is an important factor. If you randomly set prices for rent, then you may price your units too low or too high. Either way, business is negatively affected. The Property Management Insider reported on a recent webinar and stated, “factoring key influences and property amenity valuations can lead to smarter decisions.” That means that you don’t want to price all your units at the same rate, but you need to know why you’re pricing them the way you are. Here are 3 tips when considering the valuation of amenities.
Amenities can help you drive the price of certain units
Not all amenities are tangible items in the unit. For example, some units will be literally only a few feet away from the swimming pool or tennis courts, while others will be at a distance. That means when you’re selling a place that has a prime location, you are offering more value. You can factor that into the rental price.
Provide Periodic Reassessments
Units with granite countertops will have a higher valuation than those that don’t. But here’s the twist. Just because a granite counter top is worth “X” dollars more than a standard one doesn’t mean everyone is willing to pay much more for that type of countertop. You will need to do a review periodically to determine if you are renting those higher end units at the higher price. If they are sitting empty for too long, then you ultimately lose money. So, in the assessment phase, you may have to readjust the amount to ensure the units are filled.
Track your data
As with any good system, you need to keep track of your data. Keep a spreadsheet of what each amenity is and how much it’s worth. You also need to have columns that indicate how fast (or slow) the unit rents. That way you can determine if the valuation of the amenity needs to be adjusted as mentioned above. If so, track how fast it rents after changing the price. This way you can see if it really makes a difference.
For more tips about how amenities play a part in pricing your units, contact Marquette Management today. The best place to live, work, and invest!Back to all posts