How to know What is the Correct Rent, for your Property

Most house owners find it hard to create the right balance between the price of their property and the rental income it can draw. Keeping the rent too high will reduce potential takers. At the same time, quoting a price that is too low may cause losses. Therefore, it is extremely important to price the property correctly, for attracting tenants.

Factors that affect pricing of the property:

1. Property size: the rent of the property will be higher depending upon how big it is. Larger the size, greater the rent.

2. Layout: A same-sized apartment but with more rooms will draw a better rent than a single room apartment. This is because the former layout will offer more independence.

3. Amenities: A same-sized apartment but with a gated community, car parking, clubhouse, swimming pool, will fetch a better rent, in comparison to an apartment that does not have such amenities.

4. Internal facilities and fixtures: A house that boasts of a modern kitchen, wall cupboards, appliances, storage space, will normally get a better rent.

5. Property location: The area where the house is located, its closeness to hospitals, schools, market, etc., and closeness to public transport facilities can play a huge role in defining the rent. Also, the competition in that area for rental properties and the demand will also affect the amount fetched.

Getting the right rental income:

Here are a few strategies that help to boost your income:

1. Furnish the house. A few extra dollars on the interiors of the house, can deliver a higher rent.

2. Invest in houses with at least three bedrooms. This will help open the option of renting to students, thereby, helping get better returns.

3. Choose housing societies that are well-maintained with some amenities.

4. Hire reliable property managers who can ensure that your property does not remain vacant for too long.

5. Ask for the right amount to ensure that your house is never vacant. A competitively priced house will ensure continuous revenue. Also, study the market occasionally. Times when the demand looks high, charge higher. When you see the demand sloping downwards, reduce the rent for attracting tenants.

Other factors affecting rental price:

1. Supply and demand within the micro-market.
2. Capital value and location of the asset.
3. Prices in the market.
4. Type of people living in the area.

If you keep all the factors in mind when deciding on a rental amount, you can rest assured that you will always have tenants interested in your property. However, it is still a good idea to leave the job to property management services. They can not only help you find the right candidates but will also look after their needs as well as yours. Also, in case a tenant turns out to be a nuisance, they also offer eviction management and can help clear out the space without any hassle.  This facility is very important for property owners. 

Getting the Right Mix of Tenants for a Commercial Property

The main aim of any land or property owner is to get maximum income from their asset. However, this does not mean they should not concentrate on the larger picture and lease their space to anyone who shows interest. It is important to maintain a perfect mix to increase foot traffic, more spend, happy tenants and eventually more demand and greater rates for the area.

Here are five ways through which you can create the best blend of tenants.

Understand the demographic

The type of demographics close to you plays an important role in determining the type of retailers that will work. Perform thorough surveys and get information related to what the potential customers may like to see in the location around their vicinity. For example, pharmacy can be an extremely valuable addition for a population that is aging.

Speak to the existing tenants

Existing retail tenants can be an excellent source of getting insights for what products and brands can increase their store’s popularity and eventually benefit the landlord. Evaluate the performance of these stores and put more thought into what their strength is and what their weaknesses are. This will assist in overcoming the shortcomings.

Assorted brands

A center that has the right balance between the small and big brands and offers a bigger selection of product or service categories than just concentrating on a certain demographic gets better foot traffic. Select tenants from numerous product categories and make sure you include small brands and local retailers who have fresh and new things to offer. Also, apart from retail, offer facilities such as, ATMs to enhance the effort and time spent on creating that faultless tenant mix.

Making market assessment

Brands that lease may come and go. This can be a hurdle in the existing connection in the retail outlets. For example, women visiting the retail center for buying groceries at a specific outlet also grab a cup of coffee at the outlet next to it. It is important for retail centers to invest effort and time continually for assessing the market and making sure that their mix is improving the performance, overall.

Always sign a contract with a reputed commercial property management company

Commercial property management providers have been able to master the art of utilizing various proven techniques for finding the right mix for any form of retail space. They have the experts to study the area where the property is located, evaluate the geographical drawbacks and benefits of the area and have experienced real estate professionals to work. They check what is missing by doing a competitor analysis within the area and also work on obtaining quality tenants for their property.

Real estate companies, as well as landlords, can make use of such services for handling tenant relationships from the very beginning till the very end while also focusing on other important activities. However, it is very important to choose such providers wisely and to ensure that they have a good reputation in the market.