OnDemand WTP Pricing Research

Seven Tips To Pricing Rental Property For Maximum Exposure And Consistent Income | Forbes

Whether you are converting your home into a rental property or investing in real estate for the benefit of passive income, you need to price your rent effectively in order to ensure minimal vacancy loss and maximum exposure to renters when you list for rent.

The history of asking rent prices in the U.S. shows a steady increase over the past 20 years: The median rent price for a one-bedroom home was at $951 in the second quarter of 2018 compared to $425 in 1995. In the same time period, average vacancy rates have fluctuated between 7% and 11%. With Americans transacting $485 billion in rent in 2017 alone, a 7% vacancy rate equates to an almost $35 billion loss in the rental market.

Real estate investing is seen as passive income, where the investor does not need to actively participate in everyday operations in order to generate a return. Unlike other forms of passive income, however, real estate investments only generate income when the property is occupied with a tenant. With proper pricing, you can reduce vacancy risk, increase renter retention and make real estate investing into a more guaranteed investment decision.

Read complete article here:

Seven Tips To Pricing Rental Property For Maximum Exposure And Consistent Income.

Post a Comment

WP-SpamFree by Pole Position Marketing