As a property manager, one of your most important tasks is to set the rent price for your properties. This can be a very tricky process! You’ll need to factor in a number of details to make sure your rent is fair to your tenant but still profitable. Plus, your rent price might need to change depending on the current market in New Zealand. Perhaps the best way to determine your ideal rent price is to work with an experienced property management company.
A talented property manager will have the training and skills they need to look at all the right factors in your area. Then, they’ll give you a number for your rent that’s reasonable and fair.
Although, setting a good rent isn’t always the end of it. Some tenants will want to negotiate the lease. In this case, you’ll want to conduct yourself professionally while taking their situation into account.
Continue reading to delve deeper into each of these subjects so you can become a better landlord.
What To Think About When Setting Your Rent
How do you know the best rent price for your property?
This may seem like a difficult question, but it becomes easier when you break down your property’s qualities to fully determine the best number. For example, work with your property management company to analyse these details:
- Location. The location of your property is a very important factor to consider when setting your rent price. Properties in desirable locations, such as close to schools or public transportation, will generally command higher rent prices.
- Size. The size of your space is another important factor to consider. Of course, larger properties will typically have much higher rent prices than smaller properties. Consider the amount of rooms and the size of your overall property when setting your rent price.
- Amenities. The amenities offered by your rental property can also affect the rent price. Properties with useful features like ample parking, practical laundry facilities or even a great gym will typically go for much higher rent prices. If your property has any special amenities, be sure to discuss them with your property management company. Potential tenants will likely pay more for rental properties with amazing amenities that can improve their lives.
- Current Market Conditions. The rental property market is constantly changing, so you may have to adjust your rent occasionally. You may need to raise your rent if the rental market is tight. You may need to lower it to attract more tenants if it’s more competitive.
You can also consider getting a free rental appraisal to find your ideal rent number.
What To Do About Lease Negotiations
So, what about lease negotiations?
Lease negotiations can involve the tenant, the landlord and the property management company discussing changes to the lease. This can include speaking about the rent price, the length of the lease, the tenant’s renewal options and more.
It’s extremely important to remain professional during your lease negotiation. Here are some helpful tips:
- Be Prepared. Before you start negotiating, make sure you know what you are willing to accept in terms of rent price and other terms of the lease. This will help you to stay firm during the discussion.
- Be Flexible. It’s vital to be flexible when negotiating. You may lose out on a good tenant if you are too rigid.
- Listen To Their Needs. You should always listen respectfully and actually take their needs into account. Listen to their needs and concerns as they speak to you. This will help you find a solution that works for both of you.
- Be Respectful. Always stay respectful to your tenant and their time. The more you show care and respect to someone, the more likely they are to remain respectful and professional.
- Consider The Benefits Of Keeping This Tenant. Even if you have to make adjustments to the lease, keeping your tenant could be more beneficial than letting them go. Letting them leave will mean that you and your property management company will need to go through the process of finding a new tenant for that property and you might suffer a longer vacancy rate.
- Look At The Situation As A Whole. It’s absolutely essential for both parties to look at the situation as a whole, not just from their own point of view. Think about what they’re going through and try to see it from their side, as well as yours. This will help you find a solution that everyone is happy with.
Do You Need More Advice? No Problem, Call Us!
Navigating rental prices and lease negotiations isn’t easy, especially if you do it on your own. Luckily, you’re not alone! We at At Home Property Management are here to help.
Make sure your rent prices are fair and your negotiations are professional with the help of At Home Property Management.