Being a landlord, it is your responsibility to be efficient in running your rental business for you to be able to satisfy the customer’s needs in exchange for the amount that they pay. This doesn’t mean a simple accounting or scheduling is enough; you will be forced to face many challenging tasks such as maintenance, legal works, self-studies, etc. in order to secure your return on investment as soon as possible. Another example, even raising the rent alone for a rental property requires above ordinary skills as it is a combination of research, marketing familiarity, PR (public relation) skills, familiarity with local laws and legal responsibilities, and most importantly, business management skills itself. For you to be able to face these challenges, pay attention to how our company, Jaxon Texas, can help.
Again, the process of raising rents is not easy; this is true both for landlords who are amateur and those who already have years of experience in running a rental property. This is because aside from a significant amount of effort that should be put toward the procedure, it also requires a significant amount of money that can be washed down the drain later if not taken care of properly. Worse, this is going to cost a further amount, hurting your investment instead of the other way around. This is the reason why specific actions should be strictly followed by landlords or property managers in order to effectively gain from this action.
The landlord’s basis on rental increase differs from place to place and rest on the current situation. But remember that wherever your property is located, tenant-landlord laws that you should abide really matter a lot in determining the amount you want to add to your current rate. However, to give you some clue, you can look for the following information and use them for guidance and references:
The range of prices for a rental property in the area
The specific tenant-landlord laws of the area
Amenities (playground, garage, gardens, entertainment centers, parks, pet-friendly zones, clinic, laundry business, gym and sports centers, swimming pool, malls, hardware shops, tech stores, etc.)
The demand on the area
Upgrades and Renovation
When considering the location, it is important to always look at the convenience when it comes to access to the city. This is because people flock out from provinces to go to these areas because almost everything they need can be provided, given that they have income and stable jobs such as schools, churches, supermarkets, recreational and entertainment centers, shopping areas, etc. Either permanently or temporarily, people come to major cities or places nearby to experience the kind of lifestyle and try new things. Aside from that, a city is also a mecca for working-class rural people aiming to have a “better future” by having various job options. If your property is perfectly located in these kinds of neighborhoods, you can surely add a good amount to your rate whenever you deem it necessary. Being in a prime location like that attracts a lot of tenants as they don’t have to travel for hours and pay a big amount for transportation in doing their important businesses.
Now looking at the amenities, it is important to make a well-thought comparison by doing a little research about other rental properties in the surrounding areas or cities. By considering your competitor’s features, you can have more basis for determining the right amount you want to add up to your current rate; meaning you can come up with a more scientific approach by considering statistics and other factors that are involved and that essentially contributes to the components of the property’s value. For example, you can ask how much is the usual rate on a particular neighborhood and then look at the amenities that they have and then compare them to what you have. If yours are newer, for example, you can raise it to a premium level. But if you think they have a poorer quality or the amenities are lesser, then you cannot charge a rate that exceeds what you can only provide.
We at Jaxon Texas know that these are not just simple things to do and not easy tasks to manage. Therefore real estate experts always suggest that you hire a property manager. With our service at Jaxon Texas, you won’t have to worry about your investment anymore. That’s why if you want to be permanently efficient in determining your rental system, contact us now.