As a Charlotte property manager, we have potential customers contacting us everyday about managing their rental homes. Their questions typically boil down to two:
1. How much can my house rent for?
2. How fast will it take to fill with a tenant?
These two questions are not mutually exclusive.
This leads the property manager to ask the true follow-up question:
How fast do you want the property to be filled?
Duh, today or tomorrow would work! What type of question is that?
It’s the only question.
Here’s the logic: if you put the average Charlotte house up for rent for $100, we could have someone locked up today to rent it. Conversely, if you put your house up for rent for $10K today, it would take us years to fill with a tenant (if ever).
The equation is:
$100 Rent = Tenant move-in today
$10K Rent = Tenant move-in in 5 years
Today ($100) < How Fast you Want a Tenant to Move-in ($X.XX rent) < 5 Years ($10K)
If you want a tenant to move-in within 3 months, a good property manager should be able to tell you what price you should list your home for rent for ($X.XX). Chances are, you won’t be willing to accept the monthly rental price that would have your home filled within two weeks (nor would it be wise). But at least you would have the information to make the choice you want based on your needs.
With all other things being close to equal (marketing of the property, etc.) in an efficient rental market, rental price should determine how fast a tenant moves into your property. Speed is a function of price.
The only real question is, “How long do you want to wait for a tenant?”
Brett Furniss is the President & Owner of BDF Realty (“Charlotte’s Most Innovative Property Management & Investment Company”), and Rent-To-Sell Realty (“When You Need a New Solution to Sell Your Home”) which specialize in rent-to-own (lease options) and rent-to-sell homes. You can contact him directly at Brett@BDFRealty.com.
Posts
No comments:
Post a Comment