Setting Market Rent in Oregon and What You Need to Know
The most common question among investment property owners is “how much can I rent my house for”? You cannot set your rent arbitrarily. Too high and you run the risk of longer vacancies. Too low and you’re losing potential income. Especially when your setting market rent in Oregon. There are many things that must be considered to properly set a rental amount. Once you set a rental amount, it is important to remember that rental prices fluctuate every year depending on the location, economy, and the local rental market and therefore should be reviewed at the end of each lease term. Here are several ways to calculate the rental value to ensure the best ROI from your Oregon rental.
Do Your Research
The first way to determine what a property’s rental rate is, is to look at what similar properties in the local area are renting for. To attract the best tenants, it is important to set your rental rate at a competitive level.
Once you have an idea of what similar properties are renting for in the area, you can then begin to look at what sets your property apart from the others, such as:
- Bedroom and bathroom count
- Upgrades such as appliances
- Pet policy
- Is there a yard
Track Market Shifts
Rent is a dynamic figure. It is important to keep in mind that just because your rental rate is inline one year, doesn’t mean it will always be so. The rental market moves up and down and failing to keep this in mind and adjust as needed between lease terms could result in you finding it difficult to rent your property or losing income that would otherwise be realized if your rental rate was too low.
Use Rent Estimate Tools
There are several rent estimates services available to help you set your rental price. These tools take into consideration many factors including local market and property value. However, it is good to keep in mind that these tools are only as good as the information you provide and the statistics available. While rent estimate software is a good tool to use a guide, it shouldn’t be the only thing you base your rental rate upon.
Rental Agreement Terms
Rental agreement terms can also influence how much you rent your property for. In some markets, short term leases of six or nine months are so attractive to potential tenants that many landlords can charge more rent than other similar properties with more traditional lease terms.
In Oregon and in most cases, it is important to have a good understanding of what is allowed under local, state, and federal landlord laws, you can increase your rental rate comparative to other similar properties by giving tenants the ability to have pets.
Hire a Property Manager
At Blue Roof Property Management we have access to the professional tools and the knowledge it takes to properly assess the market and ensure your rental rate is not only competitive but maximizes your investment income. According to Buildium’s 2021 Owners’ report, over 75% of property investors use property management services. Real estate is likely to be one of the most expensive investments you will ever make, so why wouldn’t you want to utilize the expertise of a professional to ensure that it is well looked after?
We not only help set an ideal and allowable rental rate, but we also oversee the day-to-day running of the property, ensure every applicant is properly vetted and handle any maintenance issues. Furthermore, are versed in finances and can create reports detailing the success of your investment and advise on what adjustments could be made to increase your rate of return.