To attract good tenants and maximize what you earn in rent, it’s important to price your Humboldt County rental property competitively without losing your potential for profit.   

Proper pricing will always require a nuanced understanding of the local rental market in Humboldt County and an objective look at how your property compares to the other home for rent in your area. 

Professional property managers will approach the pricing process by choosing a competitive rental value that reduces vacancy and attracts well-qualified tenants while earning as much as possible in recurring monthly income. 

There are some risks to pricing your property incorrectly:

• Pricing your rental property too low leaves you with less income than you could actually be earning. You’ll struggle to increase your price from year to year while keeping your tenants. 
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  Pricing your rental property too high leaves you at risk for a longer vacancy. Tenants are more educated than ever, and they won’t overpay for a home when they know there are others available that fall within their budget. Those higher prices also tend to attract unqualified tenants who have been denied from renting other properties because they don’t meet the landlords screening standards. 

Placing well-qualified tenants with the right rental price is your goal. 

Here’s how to competitively price your Humboldt County rental home. 

Access the Best Property Management Technology and Pricing Data 

Before you price your own rental property, you need to know what similar properties are renting for in your specific neighborhood. 

Start with a comparable market analysis that delivers accurate, hyper-local data. The information you gather is critical, so if you can’t access good data on your own, reach out to a local Humboldt County property management company. We are always tracking pricing trends and rental values. We can tell you what homes have rented for recently, and how long it took to occupy vacant investment properties. We follow new construction, apartment communities, and single-family homes. A good property manager will have excellent data, and they’ll be willing to share it with you when you’re pricing your own property.

A lot of independent landlords like to use rental sites online such as Zillow and Trulia. These rental platforms will show you what rentals are listed for. However, you cannot always depend on those sites nor can you always trust the list price. Those homes may rent for something else. There may be variables that don’t show up in a rental listing.

Remember that the market always drives the price of your rental property – before any other pricing factors come into play. It doesn’t matter how much money you want to earn every month, and it doesn’t really matter how much you think the property is worth. 

You have to price your property competitively because you’re rarely the only rental home available to tenants. It’s important to stay close to the market rates. That’s how you’re competitive and that’s how you place the best tenants quickly.

Location Matters When Pricing Your Humboldt County Rental Property

While your competitive rental value is always market-driven, there are certain factors and features that make your rental home more competitive than others. A competitive rental price can be established with the help of understanding your home’s age, location, and property condition. 

Let’s start with location, which everyone knows is critical when it comes to real estate. Location is a driving factor in rental prices.  If you’re renting out a home that’s in a desirable neighborhood with good schools and easy commuter routes, you’ll be in a comfortable pricing position. You can easily ask for more in rent than if your property happened to be more remote and not close to conveniences like grocery stores and major roadways. 

Property Size and Condition Affects Competitive Rental Prices

Once you’ve considered the market and your property’s location during the pricing process, you can think about the size and condition of your home. Well-maintained homes with some attractive curb appeal will rent for more. If you’ve made some updates and renovations that improve the condition of your property and make it more modern, you’ll earn more than older properties that are worn down. 

Invest in those inexpensive upgrades to your property when you want to make it more competitive. Simple improvements like a fresh coat of paint, a tile backsplash, improved lighting outside, or shiny new hardware on drawers and cabinets can make a big difference. If you’ve invested in hard surface flooring or new appliances, you’ve positioned yourself to earn even more in rent.

Competitive Pricing Increases During Renewals 

When you think about pricing your Humboldt County competitively, you need to think beyond the initial price you set when you’re looking for tenants. 

You also have to think about pricing at renewal time. 

Most tenants will expect an increase in rent when they renew their lease agreement. If your property is subject to rent control laws in California, you’ll have to follow those restrictions when you establish a new renewal price. 

Even if you’re exempt from rent control laws, you have to stay competitive with those rental homes that are following the restrictions on increases. Don’t overprice your home at renewal time. You’ll lose a tenant and be left with vacancy and turnover costs. 

Study the market and establish a rental increase that’s competitive and even slightly below what other homes are renting for. This will incentivize your existing tenants to stay in place. You’re still earning more in your monthly rent, and you don’t have to worry about the headaches that come with tenant turnover. Retention is almost always better for your ROI.