Quickly renting out your investment property is essential to moving your cash flow and increasing your ROI. If you’re having trouble finding a tenant who is interested in your San Jose home, it may be due to one of three reasons:
- Price is too high.
- Condition isn’t great.
- Location is a problem.
There’s not much you can do about location, but you can make some changes to the price and the condition of your rental property in order to get it rented to a good tenant.
Adjust Your Property Price to Market Rates
How are you deciding on your rental price? If you’re looking at some of the popular rental websites like Zillow or Trulia or even Craigslist, you might be getting bad or inaccurate information. You have to remember that the homes on those sites are reflecting the listing prices, not the actual rental prices. You might see a home similar to yours that is listed for $2,200. But, it might only rent for $1,800. You won’t know that if you’re doing this kind of research. You need an accurate comparable.
Many property owners will price their listing high to see if they get any interest. But, you cannot price the home at any number you happen to pick. The market will always drive the price. You have to know your rental home’s real value.
At REC Rentals, we use the “walk the property to market” concept. Under this plan, you move the price tag of your property according to the length of time your property spends on the market. So, if you’ve had your home listed for a week and no one wants to apply for it, drop the price a little. Then, drop the price again after two weeks if you still have no interest.
You’re losing money when your home sits vacant. Don’t wait too long to drop the price. You have to adjust the cost of the home based on the competition and the market.
Improve Your Property Condition
Good tenants will only rent well-maintained properties. If your home’s condition leaves a lot to be desired, you shouldn’t be surprised that it isn’t renting. No tenants want to walk in and see stains on the carpet or messy touch-up paint on the walls. It’s not going to attract much attention.
It’s a better idea to spend a little money and improve the condition of the home. That will help you attract better tenants. The changes do not have to be complex or expensive. Upgraded sink faucets or new drawer pulls can make a big difference. Make sure the home is clean and presentable.
Location and the Rental Market
Location is something that makes a difference to tenants. You cannot really do much to change the location of your property, but you can be prepared to work around it. If you’re just outside a high-end area you cannot expect to attract those high-end prices. If you’re not in a good school district, you may have to wait until you find a tenant who doesn’t care about school districts.
Additional Considerations to Rent Your Home
Good marketing can help you rent your property. If your marketing photos are unprofessional and blurry or your listing doesn’t include the right information or you aren’t posting that listing on the right rental sites, you’ll have a hard time reaching good tenants. You need exposure if you want to rent out your home quickly. Make sure you know what to do and where to be.
Communication is also important. You need to be prepared to answer questions from prospects and show the home at times that are convenient to them. If you can’t, they’ll move onto something else. This is a hot market, and tenants know they have options. They won’t wait for you.
Consider working with a professional property management company when your home isn’t renting as quickly as you’d like it to. We can process applications and handle showings efficiently and effectively.
If you have any additional questions the San Jose rental market, please contact us at REC Rentals. We’d be happy to help you.