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Pricing Your Apartments
Terence Ward, Knowledge Level: , Keywords: pricing your apartments by terence ward
We all want to make money with income property; the more the better! When youre looking for a new tenant, however, dont assume that youre going to make more money by charging more. If your property is priced high for what youre offering, you wont get a lot of calls, and the ones you do get will be either uneducated about your local rental market, desperate, unscrupulous, or a combination of any of these.
What to do? Perform your due diligence: check the advertisements for similar apartments, make appointments to look at them, talk to real estate agents and others in the business, and get a clear idea of how much others are getting not just charging for similar rentals. Then, advertise yours to undersell the competition.
Why undersell? Its a basic rule of economics that price is a great way to compete. If you offer a good product for slightly lower, youll get a lot of calls, which means youll be able to screen more applicants and get the best possible tenant into the unit. Once you have a quality tenant that likes the place, youre golden you can make increases annually that put your unit in line with others. Tenants who dont have slumlords for landlords wont go to the trouble of searching for a cheaper place because of the costs associated with moving. Your first-year discount got the best tenant in the door, and providing quality housing will keep them there.
In conclusion, dont let your greed cloud your judgment when youre trying to find the right tenant.
2005 Terence P Ward, all rights reserved. Terence P Ward is the President of Landlord for Hirewww.landlordforhire.com a residential property management service of Green and Clean Corporationwww.Green-n-Clean.biz based in the Mid-Hudson Valley of New York State. You may find contact information for him on either of his companys web pages.
Article Source: EzineArticles.com
How do you fix a price point for an apartment? Take a guess? Figure it based on your carrying costs? Check comps and do a market analysis? Charge whatever the market will bear? If youre looking . Article on pricing your apartments by terence ward by Terence Ward
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