Every rental property owner wants to make as much money as possible on their investment, and that can lead to bad decisions on rental pricing. Of course you want to set the rent as high as possible; however, you have to follow the demand of the market and you need to be sensitive to your competition.
Accurate and competitive pricing leads to more consistent income and higher returns on investment (ROI) than arbitrarily setting a high rental price.
The Los Angeles rental market is always competitive. Prices are high, and there’s a lot of demand for well-maintained rental homes in desirable locations.
Various factors impact what kind of rent you can set for your Los Angeles investment property. Here are some of the strategies we recommend as your expert property management partners.
Research the Los Angeles Rental Market
Before you establish a rental value, research the rental market in Los Angeles. Understanding the market will help you set competitive rents that attract quality tenants. You can use various tools and resources to research the market, including:
- Online sites such as Zillow and Zumper
- Information from the Multiple Listing Services (MLS)
- Data provided by a local Los Angeles property manager
Rental values are hyper-local. While using online information is a great starting point, try to access the best and most reliable data you can from a property management professional.
Analyze Your Rental Property Location
We don’t have to preach about the importance of location. It’s always been one of the primary factors that determine rental prices in Los Angeles. Properties located in prime areas and sought-after neighborhoods are sure to attract higher rents than those located in less desirable areas. Consider the proximity of your property to amenities like shopping centers, schools, and parks. Properties closer to these amenities will always fetch higher rents.
Update Your Los Angeles Rental Property Condition
Pricing can be frustrating, because there’s not much you can do about the strength of the market or the existing competition. But, you can control the condition of your property, and condition counts, too, when we’re talking about rental value. Larger units with modern features such as air conditioning, in-unit laundry, and hard surface flooring will likely fetch a higher rent than rental homes that are older and deteriorating. Single-family homes with fenced yards and attached garages will earn high rents for owners. Newer properties in excellent condition may also bring in a higher rent due to their attractiveness to renters. Don’t hesitate to make the upgrades and improvements that will drive up your rental price.
Work with a Los Angeles Property Manager
There are plenty of great reasons to partner with a property manager in Los Angeles, but pricing your property competitively and profitably is probably the best reason to reach out for help. Your property manager can conduct a comparative market analysis (CMA), which will provide in-depth insight into the rental market trends and rental prices in your area. This analysis can use factors such as property size, location, number of bedrooms, and property type to determine the average rents for similar properties in your local area. This information can help you set a competitive rent price based on market trends.
Setting rent prices for your rental properties in Los Angeles can be challenging, but by researching the market, considering the location, analyzing your properties, conducting a comparative market analysis, and working with local experts, you can make informed decisions that maximize your profits while attracting quality tenants.
If you need some help or have any questions, please contact us at EGL Properties.