How to Maximize Rental Property Income with the Right Monthly Rent Amount

Have you been able to maximize rental property income by setting the right monthly rental amounts on your North Carolina properties? Successful landlords understand the importance of researching the local rental market and asking the right rental rate for their rental units. Let’s take a look at how you can maximize real estate investment property income by taking a few steps to set the right monthly rent amount.

Why is This Rental Property Strategy so Important?

There are several reasons why placing emphasis on the monthly rent rate is a smart strategy for maximizing rental property income. First, asking for the right amount of rent when marketing your North Carolina rental properties will attract a larger number of potential tenants, which improves your chances of renting to high-quality tenants. Second, this strategy also minimizes vacancies and keeps your rental income flowing.

Understanding Local Rental Market Conditions to Set Rental Rates

Do you have a sound understanding of market the conditions where your rental real estate investments are located? Is the local rental market a renter’s market with lower rent rates due to plentiful vacancies? Do market conditions dictate higher rents because of lower vacancy rates, thus creating the market perfect for landlords?

Landlords faced with a renter’s market often find themselves offering rental incentives along with lower monthly rental amounts to fill vacancies. On the other hand, landlord’s markets offer landlords the opportunity to be more aggressive with monthly rents, which can include increasing rents on lease renewals. This can also put landlords in a stronger negotiating position when it comes to incentives or lease flexibility with tenants.

Landlords Should Research Comparable Rental Properties

Besides researching the local rental market, landlords will also want to spend time studying comparable rental units to understand how much their rental properties in North Carolina can command in monthly rent. Scour all the locations where you market your rental properties for rental units of similar sizes that offer similar features and amenities.

If you have access to the local MLS (multiple listing service), you can look at comparable rental homes which are actively seeking tenants and ones which have already rented, to get an idea how of long properties are sitting vacant at specific monthly rental amounts. With a list of rental comps in hand, landlords can put together a more educated plan for setting the right rental rate to maximize income and minimize vacancies.

Benefits of Property Managers for Setting Rental Rates

Doing your research and following tips is a great start, but can you do more to maximize rental property income with the right monthly rent amount? Working with an experienced, proven North Carolina property management company does come with many benefits. One benefit is expert guidance that goes beyond local market conditions and comparable rental properties to help you set the perfect monthly rental rate.

A property management company will drill deeper into rental market conditions to ensure you maximize monthly rental income. Property managers use their knowledge and experience to look at variables like neighborhood desirability, amenities, floor plans, proximity to public transportation and major thoroughfares, local economic factors, and much more. These are insights landlords may not be privy to when preparing to market a property for rent.

Are you ready to save time and money, protect your real estate investment and grow your bottom line? Contact us now to discover why our landlord clients who own rental properties in Raleigh, Durham, and Chapel Hill say working with Red Door Company is The Right Way to Rent^®.