How to Accurately Price Your Long Beach Rental to Rent Quickly in Any Market
Dustin Edwards • May 22, 2020
Right Price Gets the Right Tenant and Best Yield
A rental property that is priced too high sits without a tenant and costs you money. A rental property priced too low doesn’t allow you to get the best yield on your property. A rental property priced just right gets you a great set of tenants to select from and maximizes your return on investment. We invite you to find out how to price your Long Beach rental for maximum return in any market.
Comparing Your Rental to the Competition
The first aspect that we evaluate when we are looking to price a rental on the market are the comparable properties that have rented. For this element of the evaluation it is important to evaluate the core aspects about the subject property such as the number of bedrooms, number of bathrooms and the size of the property against the other properties that have recently been rented. Using these baseline metrics one can get an idea of what your property could yield in rent.
Comparable rent data is one of the most difficult portions of the equation to acquire when you manage one rental. We have the advantage of managing over 800+ properties on any given month and utilize specific industry software to help us compare other rentals in the subject property neighborhood.
Availability of Rentals in the Neighborhood
Just as in any market the aspect of supply of available rentals will have an impact on the monthly rent. When renters have a number of options available to them they can easily go to the competition vs. your rental which can put downward pressure on the monthly rent you could achieve. Likewise when there are a limited number of rentals for lease available in a neighborhood (think Belmont Heights or Park Estates) then you could see the ability to get a stronger yield on the monthly rental amount.
Condition of Your Long Beach Rental
One of the reasons we meet with every property owner at the residence for a walk-through, even before we work with them, is to help us gauge the condition of the property. In our experience the stories you hear of owners stating “it’s just a rental” when it comes to how a property is treated is not how we like to prepare homes for rent.
When we walk a property most often we see that properties suffer from paint that has lost its luster and flooring that has been well used over the years. Re-painting, even if it’s touch-up, and cleaning the floors can make a big impact to the rental price. Take time to evaluate your property after each tenant
looking at anything from electrical sockets to dripping faucets to ensure that everything is in great shape.
Being able to attract a tenant who will pay your desired rental price and for rent for years to come means preparing the property so the condition is truly move-in ready. This doesn’t mean you have to have sparkling granite and stainless appliances (although these features and property upgrades
would allow you to get an even higher rental amount), it simply means that the property needs to allow a tenant to open up the doors and start enjoying the home.
Unexpected Property Features that Could Increase Rent
Unexpected features are items that aren’t common to properties within a specific neighborhood but ones that can attract a select group of tenants. For example, consider a dog run. A dog run is a great feature for those that have a dog and, if you allow pets in your rental, a nice enhancement to a property. Another unexpected feature is a storage shed. Many tenants have come from other states and have additional items in a local storage facility. If your property has a smaller shed this could enable a tenant to forgo their 3rd party storage and allow you to charge a small premium on your rental. With the uniqueness of properties in Long Beach there are far too many unexpected features to mention, but taking the time to understand what renters want will help you to price your rental with the added features.
Pricing your rental property in Long Beach will come down to many factors and even dictates the volume of prospective tenants that you can receive. When you want help pricing your rental, in any market, we invite you to call us today at (562) 888-0247. Or if you prefer a complete evaluation of your property we invite you to fill out our Free Rental Analysis.
Share this post
ADUs are a great to expend your current rental property and increase unit count for rent, find out the different ways to convert existing structures into ADUs
There's value in keeping tenants happy. Discover 4 reasons keeping tenants happy is good for your property.
With the real estate market as competitive as it is, many landlords are looking into building an Accessory Dwelling Unit (ADU) or Jr. ADU to improve their bottom line with additional monthly income. While this is a great way to earn more, you need to be sure you’re investing in the right upgrade to your property. Below are some of the key differences between ADUs and Jr. ADUs; this way, you can make the right decision for your property. Differences between Junior ADUs and ADUs On the surface, the primary difference between an ADU and a Jr. ADU is the square footage. However, there are many considerations for each type of ADU , significant differences include costs and build limitations. ADUs are generally seen as a larger and more versatile build when compared to a Jr. ADU. They can be built detached from the main home, converting an existing structure, most commonly the garage. In Long Beach, an ADU can be up to 800 square feet or 50% of the gross floor area of the primary dwelling, whichever is smaller. For reference, an 800 sqft living space can be arranged as a 2-bedroom 1-bath home, though with creative use of the space, many investors have been able to fit 2 bedrooms and 2 bathrooms comfortably. If listing the ADU for rent is the goal, this can produce a higher yield, though at the cost of a higher initial investment. Jr. ADU, on the other hand, can only be a maximum of 500 sqft and must be built attached to the existing single-family home. While you can build an entire new addition to accommodate the Jr. ADU, it's not uncommon for homeowners whose homes are bigger than they need to convert a bedroom into a Jr. ADU in order to have additional income . A Jr. ADU does still require an efficient kitchen. Bathrooms can be shared with the main house, though this can deter some prospective tenants. Additionally, the utilities are oftentimes shared with the main house, which can simplify installation, though it can complicate utility costs with your tenant. When an ADU is Right Being able to build a full ADU provides an entirely separate and private living space, which is more desirable to prospecting tenants. This is the preferred choice for most investors, especially those who have unused space in their property. By being built apart from the main house, an ADU may cause less disturbance to those living in the main house, whether that be yourself or another tenant. In Long Beach, CA. ADUs can’t be listed as short-term rentals on apps like Airbnb; that being said, an ADU can command more in rent because of the aforementioned features. If you’re looking for a long-term investment, ADUs increase your property’s value while generating a consistent cash flow. Finally, if you ever plan on selling your rental property, the additional ADU can improve the appeal of your property to future buyers. When a Jr. ADU is Right While a Jr. ADU doesn’t have the same potential as a full-sized ADU, Jr. ADUs are far more budget-friendly. These are a great option for investors who have limited funds. Since Jr. ADUs generally require less work to be done in less time, allowing you to begin making a return sooner. Finally, if your property doesn’t qualify for a full-sized ADU permit due to the size of the property lot, a Jr. ADU can be built primarily through interior work, which may only require reconfiguring existing interior space. Whether you choose a full-sized ADU or a Jr. ADU, the decision depends on more than just the size of the structure, you’ll have to manage filling the vacancy and managing the new tenant. If you need help choosing which ADU is right for you or you 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 .
