How to Set the Monthly Rent for your Oahu Rental Property
Part 4 – MARKET VARIABLES AND TESTING THE RENT
In our previous posts we discussed the property, researching Oahu rental properties and setting the rent range … and in this post we will focus on what variables we should consider, and importantly learning how we determine if we set the rent right.
After determining what my Oahu rental property has to offer, researching what other properties on the market are offering and asking, and setting the rent range, I take a look at market variables. Market variables include rental market conditions, sales market conditions, particularly unique property attributes (i.e., proximity to ocean, view, neighborhood), the military housing waiting lists, and time of year – to name just a few. Knowing the demand for rentals is the most important – and each of the above variables will help you draw conclusions. This is not about saying $50 extra per month for a hot rental market – because it’s not that cut and dry. I use a plus or minus test – hot rental market = plus, December = minus. It is these variables I discuss with Oahu investment property owners when I make a suggestion of whether rent should be set at the low or high end of the rent range we established in Part 3.
It’s time … you must set a rent. But how do I (and you!) know we are at a market rate?
I often tell investment owners seeking Home Shoppe Hawaii’s property management services that I will know within two to three days whether we have hit the rental “sweet spot.” The property management software we use at Home Shoppe Hawaii has integrated marketing solutions allowing us to post world-wide to tens of different rental websites. Add to this AHRN.com and Craigslist – and within 48 hours the property is visible to thousands of people looking to secure an Oahu rental property. The correct measure is not whether the property rents quickly, but whether we have generated sufficient interest in the first 48-hours. If a property rents within days – it might be priced too low. If a property doesn’t rent for a month or more, it is priced too high. But if the Oahu rental property generates interest – greater than 10 calls or requests for showing within the first 48 hours, we are priced well – and it will likely rent within two-three weeks.
I can’t make a guarantee of course – but I have been pretty good with predictions. If you would like to learn more about the services we provide for Oahu investment property owners, please don’t hesitate to contact Home Shoppe Hawaii.
MORE INFORMATION ABOUT OAHU PROPERTY MANAGEMENT IN KAILUA, HONOLULU, KANEOHE, OR HAWAII KAI.