Oahu Property Management | Setting Monthly Rent for Oahu Rental Properties PART 1

How can I determine how much to charge for monthly rent on my Oahu rental property? 

What is the fair market rent for my Oahu rental property? 

I am collecting $X per month in rent … is this fair rent for my Oahu rental property?

I get asked these questions all the time.  I often wonder if there is a secret formula out there that I am not aware of and so every so often, I Google® it.  The truth is, every property manager and owner manager sets the rent for their rental properties differently.  Some use comps, others add market conditions, and first-time Oahu investment owners often take into consideration their monthly mortgage/tax/insurance payment.  Add to this, the fact that in Hawaii, we don’t have good rental statistics from which to compare monthly rents (that is, statistics on Oahu investment properties that are rented rather than on offer for rent).   In fact, the only way Oahu property managers can determine what rental properties are actually rented for is to use their currently rented inventory as a gauge and to search our MLS for “rented” properties. 

Unfortunately, the general public does not have access to this information, and not every property rented is entered in to the MLS.  This means we as property managers may get only a fuzzy picture of what actual rents on Oahu rental properties are in any particular area.  It is even more difficult for individuals who manage their own Oahu rental property, as they have access to only what’s currently available for rent. 

The result is rents that are all over the place:  potential residents that are frustrated with the rental market, and investment property owners not realizing their full rental income potential.

We all benefit from Oahu rental properties that are priced correctly.  In this series of blog posts I will outline and explain the method I use to set the fair market rent for an Oahu rental property:

A. View Property

B. Research Rentals

C. Research Market Variables

D. Set Rent

Read the next blog in this series:  View Property.

Our job as property managers is to protect the Oahu rental properties we manage, and maximize the return for our Oahu investment property owners.  To learn more about how Home Shoppe Hawaii can help you with your Oahu rental property, contact Yvonne Jaramillo Ahearn (B) at 808-721-8088 or yvonne@homeshoppehawaii.com.

MORE INFORMATION ABOUT OAHU PROPERTY MANAGEMENT IN KAILUA, HONOLULU, KANEOHE OR HAWAII KAI.