Blog Post

5 Reasons To Reassess Your Rental Prices

Dustin Edwards • September 24, 2024

Understanding when to reassess your rental prices can be the difference between breaking even and long term profitability. While you should regularly reassess your rental prices every year, there may be some times when reassessing should be done more frequently.


In this article, we’re going to go over five different reasons to reassess your rental prices in order to stay competitive and maximize your bottom line.


Changing Market Conditions

The rental market is constantly changing, and it can be influenced by a number of different factors including local demand, and seasonal trends. For this reason it's important to assess rental prices regularly as this ensures your rental property remains in line with the current market conditions. Being proactive helps to prevent rents from being too high or too low, depending on the neighborhood your rental is located in. This can ultimately maximize occupancy rates and maintain a strong market position.


Although it may seem counterintuitive to lower rent prices occasionally, staying competitive protects your investment and can
improve rental income in the long run. This helps to ensure that your property remains attractive to prospective tenants.


Property Upgrades

Rental properties are regularly receiving maintenance and property upgrades. Though not all upgrades are created equal. If you've recently completed significant upgrades or renovations that increase your rental property’s value, reassessing your rental prices may be a good idea. 


For example, modernized kitchens and bathrooms, smart home technology, or energy-efficient windows are great selling points for a rental property. Reassessing rental prices following these improvements helps to ensure that the improved value is reflected in your asking price. This approach not only helps recoup investment costs, it can attract higher quality tenants, and may potentially boost overall profitability.


Rising Operating Costs

Operating costs are constantly rising, increases in property taxes, insurance premiums, or maintenance expenses, can greatly impact your bottom line. Reassessing your rental prices and adjusting them to reflect these higher costs helps ensure that rental income adequately covers these expenses. While raising rent is a standard practice, it can affect turnover rates if done without care. This way you can maintain profitability, while preventing financial strain. It also supports the longevity of your investment. Keeping rental prices aligned with operational costs, can help you protect your investment's value while maintaining financial stability.


Turnover and Vacancy Rates

High tenant turnover rates or prolonged vacancies may be a sign that your rental prices don't align with the market expectations. Having your rental prices regularly reassessed can help find the perfect balance to attract tenants while maximizing income. Addressing potential pricing issues, can significantly reduce vacancy periods, and improve tenant retention. Reassessing your rental prices at least once a year helps to ensure your rental is competitive in the market. This can improve the overall performance of your property while maintaining low turnover and vacancy rates.


Neighborhood Development

Much like the market changes, the neighborhood of your rental can change as well. The development of new businesses such as grocery stores, or new infrastructure such as a neighborhood park can increase the desirability of your property. Reassessing rental prices after these changes can help you to capitalize on added attractiveness of the area.


Monitoring the rental prices of properties in your area that are similar to your rental is essential for staying competitive too. A full service
property management company will oftentimes analyze the local competition to ensure your rental prices are attractive to prospective tenants. If you’re looking to reassess your rental prices or need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.

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By Dustin Edwards November 18, 2024
Be aware of these 3 common issues when the rainy season arrives at your rental property.
Cold weather can come fast and strong so it's best to ensure your property is ready for this climate
By Dustin Edwards November 12, 2024
It's important to prepare your rental properties for the colder weather. Although we don’t need to prepare for snow and freezing temperatures, we do need to prepare for the cold and rain. By ensuring your rental is cozy inside and prepared for the fall season , you can not only reduce energy costs for your tenant but also maintain your rental property value. Today, we’ll go over three signs your property is ready for this upcoming cold weather.  Sign #1 Proper Weatherproofing During the colder seasons, it's much easier for a tenant to notice any cold spots in your rental. Well-insulated doors and windows can not only help maintain the warm temperature but also prevent it from lowering. It can also prevent cold spots and drafts, which can help with tenant satisfaction . Doors and windows should be properly sealed and insulated to prevent drafts and maintain proper temperatures. A visual inspection of the weatherstripping around doors and windows to ensure they’re intact is a great place to start. If damaged, consider replacing them, as trying to seal gaps can be tricky and rarely lasts. Other seals should also be checked, as well as any areas that need to be caulked in order to keep cold air out. Insulation during the summer helps keep the cool air in, and during the winter, insulation in the halls and attics helps retain desired heat. Hot air rises, and if there isn't adequate insulation in the ceiling, heat will continually be lost. Luckily, adding insulation to an attic is not uncommon and typically only requires a day or two for installation. Sign #2 Energy Efficiency Measures During the winter, it's not just the cold you need to keep in mind. As days are much shorter, there is less sunlight to keep the rental warm and more hours of darkness. For this reason, it's a good idea to keep energy efficiency in mind when preparing for the cold weather. Energy-efficient lighting or smart lighting helps reduce overall costs since your tenant will likely use electricity to keep warm. Ensure your outdoor lighting is rated for external use, as this can provide crucial illumination during longer nights. Draft guards on doors and windows help reduce the load on your rental’s HVAC system which can significantly improve its lifespan. This is also a great time to replace filters and clean the ductwork in your rental to improve energy efficiency. Additionally, consider installing an insulative film on older windows, which helps retain heat and keep rooms warmer without the need for extra heating. If your rental has a programmable thermostat, ensure it’s in working order, as this can help tenants manage an energy-efficient heating schedule more easily. Sign #3 Property Exterior Southern California is a great place to settle down, and while we don't need to worry about snowfall or deep freezes, ensuring the exterior of your rental property is ready for the cold weather is important. With our cold season mainly bringing with it rain, inspect your rental property’s rain gutter system . Remove debris from drains and check for leaks or signs of wear and tear. Walkways should be clear of debris and well-lit. This may require you to prune and trim trees and bushes that may leave behind leaves. When combined with rainfall, a single wet leaf can cause someone to slip and hurt themselves. Consider adding non-slip mats or tape to areas where people may have tripped in the past. Much like during the hotter weather, it's important for your rental to be ready for fall and winter. By keeping your property ready for any weather Southern California has to offer, you ensure your rental property and tenants will provide steady rental income every month. If you need help preparing your rental for the cold weather or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards November 4, 2024
Owning a rental property in a beach city like Long Beach, CA , offers a number of advantages, like great weather and a strong real estate market. However, the cold ocean breezes can pose some challenges for landlords and tenants, making it convenient for property managers . Although the weather is generally great, these ocean breezes can sometimes make properties drafty and uncomfortable during the fall and winter seasons. Today we’ll go over four measures that can improve tenant comfort and protect your investment from the cold ocean breezes. Weatherproofing Againsts Drafts Drafts are caused by gaps between doors and windows which can make a rental feel colder than it is. This leads to unnecessary energy use and tenant discomfort. Sealing these gaps is not difficult and quite doable for a landlord who doesn’t mind getting their hands dirty. Replacing worn weatherstripping and adding fresh caulking to seal minor gaps blocks air from permeating the property. For additional protection from drafts, you can provide your tenant with inexpensive door sweeps. Improve Heating Efficiency Having efficient heating is crucial to countering the cooler ocean breezes while keeping costs low. Schedule regular maintenance for your HVAC system , such as replacing filters, cleaning vents, and cleaning the compressor to keep it running smoothly. This not only provides more efficient heating, it also extends the life of your HVAC system. Installing a smart thermostat is another way for tenants to adjust heating schedules efficiently. Protect Outdoor Spaces Outdoor areas such as patios, balconies, and even porches can oftentimes be exposed to the coastal breezes. This can be an issue in the long run, especially for rentals next to the beach , as the wind can carry sand and salt, which can accelerate the deterioration of metals, wood, and paint. This can be mitigated by adding windbreaks to the property, such as lattice panels or outdoor curtains, to create a more comfortable and functional outdoor space. Exterior finishes will require more frequent maintenance. This includes resealing wood and metal surfaces. As well as repainting is important to protect against wear from salt, sand, and moisture. Wind Mitigating Landscaping Much like with the curtains and lattice previously talked about, the landscaping can also be used as a windbreak. For example, planting wind-resistant shrubs or trees alongside exposed areas creates a natural barrier. This helps reduce the impact of the gusts of wind hitting the property. Many native plants thrive in coastal climates while also requiring minimal maintenance. While expensive, the results can greatly improve your rental’s longevity and curb appeal. Alternatively, you can strategically place planters to provide protection. Durable Furniture Furniture and fixtures exposed to the cold coastal breezes need to be able to withstand that wear and tear. Choose resilient materials such as treated wood, powder-coated metals, and outdoor-rated plastics. These are less prone to being damaged by the salt or wind. Furniture that is lightweight should be secured or anchored in place to prevent it from being blown away. By investing in durable furnishing, you can provide tenants with a comfortable and functional outdoor space for years to come. Protecting your beach city property from the cold ocean breeze doesn't necessarily require extensive renovations or investments. Try to focus on any relevant feedback from your tenant, this can help you pinpoint what part of your rental needs attention. If you need additional help protecting your rental property from the cold ocean breezes or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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