With the latest stats showing only about half of all households in Bellevue owning their own homes, it's a great place for rental property investments.
Being a landlord or property manager is a tough job that often stretches your decision-making skills. One of the decisions you'll likely have to make at some point is whether to wait out a vacancy a while or reduce the rent.
Your rental property is an investment and while you don't want to take low rent, the numbers are clear. Reducing the rent is better than no rent.
Keeping Your Rental Property Competitive
One reason to reduce the rent is if you've overpriced the listing when you advertise your rental property. The goal is to create an income stream by calculating your costs and charging enough to cover those costs plus a little more.
As with all investments, there are times when this isn't possible due to market fluctuations. Once you have a clear understanding of all your costs and you've come up with a good number, do your homework. What are other rental properties going for in your area?
Are there rentals in your area offering more amenities for the same price? Are there rentals offering the same amenities for a lower price?
Keeping your rental property rates competitive is one of the best ways to find tenants for a rental property.
Avoiding Vacancy and Tenant Rent Reduction
Sometimes self-managing rental property owners don't understand the full financials. They may feel it's worthwhile to hold out for higher rent. While it's frustrating to take less than enough rent to cover all your expenses, it can work out in the long run.
Avoiding extended vacancies is a good reason to reduce the rent on your rental property. If a current tenant asks for a reduction, don't reject it out of hand. Look at what's competitive and reasonable for the current market and offer a reasonable reduction.
A Lack of Applicants
Are you only getting a few applicants for your rental property? The best way to find tenants for rental property is to have a competitive property.
A great property with the right amenities listed at a competitive price won't sit vacant for long. If you're not getting applicants, it could also be as simple as a poor listing.
Did you use a professional photographer for the listing? A good photo really is worth a thousand words! Make sure you've staged the property before the photographer arrives.
Did you highlight and describe all the amenities? Is your property updated enough to make it competitive?
If you've done all these and you're not getting applicants, consider reducing the price. Try a small reduction of $30-$40 and see what happens.
Managing Your Rental Property Investment
A rental property investment is a great investment but you need to do your homework. If your property isn't renting, there's usually a good reason.
Once you've checked all the above boxes, don't let your property sit empty. Reduce the rent instead.
Are you struggling to manage your rental property? We offer full-service, rental property management solutions. Contact us now for help and a free rent analysis.