One of the biggest mistakes you can make in real estate investing is pricing your properties too high or too low. Another problem is not knowing when you're dealing with a landlord's market or a renter's market.
The above points are critical for crafting the perfect pricing strategy for the Portland market.
First, you must research the average rental price for Portland renters. The current average stands at $1,728 according to market trends. However, you must research prices according to unit size, such as 1-bedroom apartments to 3-bedroom homes.
A rental valuation of your property will yield even more data for your rental pricing strategy.
Learn more about the benefits of this tool
What Is a Rental Valuation (and How Can You Get One?)
A property valuation should be your first step in any rental portfolio strategy.
This valuation will reveal how much your rental property is currently worth, including its value after appreciation. These numbers (along with market research) will help you price your rental accordingly for maximum profit.
You don't even have to pay to receive a quick rental analysis.
For example, PropM Inc. offers a free valuation tool to help you discover the data you need for your pricing strategy.
Simply input the following information into the search box:
- A Portland address
- The number of bedrooms
- Number of bathrooms
- Property Type (single or multi-family?)
- Square footage
- Contact information
Once you submit the form, you'll be emailed the results of your valuation. You may continue to request valuations as Portland's rental average is subject to change due to market fluctuation rates.
Rental Value and Marketing
It's important to make this step a part of your marketing strategy, as well. Price is often the first variable renters consider when looking for rental properties.
Take a look at how rental listing sites are structured; you'll find search filters that narrow results by price. Visitors type in price ranges, from minimum to maximum desired price.
If you want more applications, price your rental within a desired price range for its property type.
However, you also want quality applicants. Remember to include tenant prerequisites in your marketing material along with price. Prerequisites should include clean background checks (including rental history), annual income, and employment verification.
Quality tenants also expect quality real estate photos.
These photos must reflect the price. Therefore, investing in necessary repairs, upgrades, and curb appeal elements is mandatory. This point speaks to the importance of working with a property management company that values property maintenance, including offering an online request portal to tenants.
Leasing Management
You must include your final rental price in your lease contracts.
Don't make the mistake of drawing up your own leasing contracts. Hire an experienced real estate lawyer who can create detailed contracts that enforce rental terms.
A property management company will handle this process for you since it has its own legal service connections.
Build Your Pricing Strategy
Remember, you must include a rental valuation in your pricing strategy. Make sure you attract the right tenants with the right price to maximize rental income profits. Together, you'll enjoy a much higher return on investment.
PropM Inc. has a team of experts waiting to market and manage your rental property. Get a free rental analysis to discover the possibility of your property or call us to talk to a professional.
