Owning a rental property in the New Orleans area can come with a lot of ups and downs, and every day that your property sits vacant, it is costing you money. Long-term leases require the proper rental rate from the very beginning; otherwise, your property can soon be viewed as undesirable simply because you listed it at the wrong rental rate.
Finding that rental rate sweet spot
Whether you work with a professional property management firm or are managing your property yourself, the first step is to review the comparable units in your area. This comparison can give you a ballpark figure of achievable rents and help provide a benchmark for you when you are setting your own rental rate. If you price it too high, your unit will likely sit empty for longer than it should. If you put the rent too low you will be missing out on cash, which can have a negative effect on your overall cash flow. Take a close look at the immediate market and make adjustments for the positive and negative attributes of your property to find that rental rate sweet spot.
Get your message out right away
Property management requires you to be on top of your rental properties and aware when you have an upcoming vacancy. Even if a tenant surprises you with an early move-out, you should have a plan in place to get another tenant in as quickly as possible. Once you know the correct rate, be sure to advertise right away. Time is money in the rental property business, and vacancies can eat away at your profit margin at a pretty fast rate.
Partnering with a professional property management firm like JW Properties can help relieve some of the headaches that come with owning rental properties, and the right firm will boost your bottom line!