San Diego rental prices dropped this year, but we still rank 10th among the most expensive major cities for renters. High demand and low supply play a big role in these high prices. Now, however, many renters have been priced out.
If you're a new San Diego real estate investor, it's easy to fall into the trap of setting your rental prices around your gross rent multiplier. However, market value isn't the only thing that matters to renters.
What should you include in a rental valuation to find your most competitive and profitable rental rates? Read on to find out.
Start With Facts and Features
You may have known the facts about your rental property like the back of your hand when you bought it. Sure, the square footage, location, and number of beds and baths remain the same. You know what amenities your tenants have, like in-unit laundry or modern kitchen appliances.
What you may know less about as the years pass is the condition of your property. One of the best ways to maximize profits is to stay on top of maintenance, but have you done so? If the answer is no, it's time to inspect your property and determine if damage, wear, and tear are lowering your rental value.
Compile Updated Comps
Your property isn't the only thing that's changing in San Diego. As we mentioned already, San Diego has seen some tumultuous shifts in rental prices across the city. Updated comps will shed light on what your competition is charging for rent and where you land (i.e., too high or too low) on that spectrum.
Make sure to cater your search to properties in your neighborhood. Location has a major impact on cost and financial performance. For example, a comparable property in City Heights will always cost less to live in than a property in Tierrasanta.
Improve the Renter Experience
Renters don't value the same things as homebuyers. That's why your rental valuation isn't a direct reflection of your property value alone. If you want to start increasing rent, it's crucial that you prioritize things that renters care about, like:
- Swift maintenance
- Digital rent payment options
- Easy communication
- Basic upgrades and maintenance in common areas
If you've been falling behind in any of these key areas, it may be time to call in backup. A property management company can handle everything from tenant relations to maintenance oversight. Hiring professionals is one of the best ways to maximize profits without increasing your workload and stress.
Get Your Expert Rental Valuation From Harland Property Management
If you're not sure how much to charge for rent as lease renewals roll around, you're not alone. San Diego has seen significant changes in terms of rental pricing, and some landlords are charging rates that don't reflect their property's value to renters.
Harland Property Management is staffed by local real estate experts who know San Diego's rental market through both professional and personal experience. With over 18 years as one of San Diego's property management companies, we have the stats to prove our skills. To get started, request your free rental valuation and discover the Harland difference.
