This biweekly sponsored column is written by the experts at Gordon James Realty, a local property management firm that specializes in residential real estate, commercial real estate and home owner associations. Please submit any questions in the comments section or via email.
Whether you are managing your rental property on your own, or have hired a property manager, here are three things we at Gordon James Realty take into consideration when calculating the rental rate for a given property.
First, we get a feel for comparable properties in your area. Study listings and units for rent locally and ask the following questions to get an idea of how your property compares:
- Is the rental located in an area that’s particularly attractive to tenants?
- Is it larger (or smaller) than typical properties with similar specifications?
- Is the property likely to attract certain groups, such as students, families or young professionals?
Based on the answers to the above questions, we hone in on comparable properties and adjust the rent up or down to account for positive and negative differences. Pay attention to length of time comparable properties remain on the market. Those that are rented out immediately may be well-priced (or underpriced).
While the rent should be competitive in the local market, you also need to be able to cover your costs. Look at your budget and estimate your operating expenses. Consider what you’ll spend on mortgage payments, if any, insurance, taxes and an adequate amount to spend annually to maintain and improve the property and make sure your investment will produce adequate income.
Keep in mind, you might not be able to cash flow positive and this is something that should be determined when you perform due diligence on your investment property, before you purchase. Consult your accountant for possible tax breaks in any losses you take on the property.
Flexibility with Quality Tenants
In some situations, it might make sense to discount the rent in order to attract a great tenant. For example, if an applicant has a stellar credit score or is willing to sign a longer lease, you could offer a small discount on rent. Say you knock $100 off the $2,500 rent to seal the deal. In one year you’d make $1,200 less, just half of what you would lose if the apartment sits vacant for just one month. If the tenant signs a longer lease, you’ll save the costs of vacancy between tenants as well as costs to turn over the rental.
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Hello Everyone — You are invited to the final meeting of NAACP Arlington Branch NAACP for 2022
When: Dec 12, 2022, 07:00 PM Eastern Time (US and Canada)
Topic: 2022 General Membership Meeting — NAACP Arlington Branch
Register in advance for this webinar
After registering, you will receive a confirmation email containing information about joining the webinar.
7:00 pm Meeting Opens.
7:30 pm Installation
8:00 pm Presentation/Q&A; by Dave Schutz on Ranked Choice Voting
8:30 pm Final Remarks and Comments by Newly Elected Members
9:00 pm Meeting Adjourns
Installation Official Robert N. Barnette, Jr. President, Virginia State Conference NAACP The President of the Virginia State Conference NAACP will serve as the Installation Official and provide remarks for our newly elected officers at the general membership.
Join us December 10 & 11 for our Annual Handmade Holiday Workshop Series. We have a myriad of fun and festive programs from linoleum block wrapping paper printing and buttonhole book making workshops led by Eliza Clifford to a meditative grid workshop and Calligraphy Card Making with Anjelika Deogirikar. Join these wonderful artists and get creative this holiday season!
Join us as we celebrate the holiday of Chanukah! Enjoy delicious Latkes, hot cocoa, donuts and more!
Clarendon Menorah Lighting and Community Celebration
Experience the festival of lights!!
*Lighting of a giant 9 foot Menorah