If you’re having trouble bringing tenants to your corporate housing, you might think the best option is lowering the rental price. But before you do so, you should consider a few things. Dropping the price might not be the right option and could leave you making less money than you want.
Look at Nearby Properties
When choosing whether to negotiate rent prices or stand solid, look to your competition. There are a few things to consider when you make comparisons. For instance, look at homes in your neighborhood with similar numbers of bedrooms and bathrooms. Also, be aware of the difference between single and multifamily homes and new versus old constructions.
Where to Look for Similar Rentals
One of the most accessible places to look for similar properties is online. CHBO and websites like it will offer other homes in your area. So you can quickly and easily search for the properties closest to yours to see if your prices are similar.
Other options for comparing prices between similar homes and condos are in-person or using a realtor who knows the area. Look at what properties get rented fast and which don’t and see how prices vary between the two.
Know Which Amenities Matter
Even if some properties of the same size in the same area are less expensive than yours, that doesn’t also mean you need to start lowering the rental price. A lot of factors go into the price. For instance, a good view will be worth more than a bad one. Likewise, an updated home is more appealing than one that has older furnishings and appliances.
Other things to consider are the square footage of the space, the layout, the floor level, and any extras. For instance, extra balconies, windows, and closets can be worth a higher price.
Never Go Below the Price of Expenses
Even in cases where you choose to negotiate rental prices, never go below the amount you spend on expenses. There should always be a profit. Think about your mortgage bill, vacancy costs, repairs and maintenance, and the amount you need to make every month.
Use CHBO to Get Your Property Rented
When you offer short-term rentals, where you advertise can make a huge difference in whether you get renters. CHBO makes it easy to put up information about your home and has an audience constantly looking for homes like yours. So add your property to the website to get more eyes on it, and lowering the rental price may never need to happen.
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