PineCone Properties NW

Not sure how much to charge for a rental property?

The number chosen is an important one — it’ll determine how easy it is to find tenants and keep tenants.

The price needs to be competitive.

It also needs to cover all of the costs associated with the property.

At PineCone Properties, we’ve bought, flipped, and rented out a lot of properties in Clark and Cowlitz County over the years. And we thought we’d take a moment to share some of the most important factors to consider when setting a rental price.

Here they are!

Competition — This is the most important thing to understand when determining the rental price of your property: what does the competition look like? If there are nicer homes that cost less, then it’s going to make finding tenants difficult. But if you charge too little, then that might attract low-quality tenants. Understand where a particular property falls along market lines.

The 2% Guideline — The 2% guideline states that a rental’s monthly rate should be about 2% of the value of the property. So a $100,000 home would rent for $2,000 per month and a $250,000 home would rent for $5,000 per month. But this is just a guideline… not a hard and fast rule.

Location — Is the rental in a highly desirable area? Or is it in a less desirable area? How much demand is there for the particular type of property? More demand means a higher rental price.

Amenities — What amenities does your property have that add to its perceived value? A pool? Parks nearby? A good school across the street? Anything else? Make sure to mention amenities in the marketing!

Hope that helps!

If you or someone you know is looking to sell your home as-is for cash, give us a call at (360)572-6664. We can close in as little as two weeks and make you a fair cash offer within just 48 hours!

At PineCone Properties, we’re a team of real estate investors that buy and sell homes in Clark and Cowlitz County.

More specifically, we can buy YOUR HOME as-is for a fair cash price.

BUT…

One of the most common questions we get from home sellers like yourself is… “How do I know your offer is actually fair?”

That’s a fair question.

Heck, it’s a question we expect to get.

And so we thought we’d stop by and give you a little more insight into how we calculate our offers for home sellers like yourself. :)

Here’s what we consider…

Cost of Repairs — This is the amount of money we’ll have to put into the home to list it on the market and resell it. More repairs mean a lower offer price might be necessary. Fewer repairs generally mean a higher offer price.

ARV — This stands for After Repair Value. It’s the amount of money the house is expected to sell for after repairing it. This isn’t guesswork, though. Our office runs comps just like a real estate agent would.

Holding Costs — This is the amount it takes to pay for “holding” the property before it sells (interest, property taxes, utilities, etc.) or rents.

Cleaning Costs — This is the amount of money it’ll cost to clean the property. The cleaner the house already is, the less it’ll cost to have it cleaned it!

That’s how it’s done.

If you want to get your fair cash offer, give us a call at (360)572-6664!