If you own a rental property, you’re likely wondering how much you can rent out your home or apartment for to maximize revenue while ensuring your renters pay a fair price compared to the local market. Whether you’re managing your rental property locally or live elsewhere, The Mor Group’s helpful staff can fill you in on all the information you need to set a fair and realistic rent rate for your future tenants.
Why Rent Now?
The housing market constantly changes, as property managers in Las Vegas know. People are always wondering if the present is the right time to invest in real estate or rent properties that they already have. Renting out property in the Las Vegas area is a sound option at the moment since income from rental properties is at an all-time high. Rental income is a good source of revenue and a predictable way to make money in a red hot market that shows no signs of slowing down. In order to maximize your profit on the market, contact the best property management in Las Vegas to ensure you’re getting the most money from your rental. If you don’t already know the value of your home, that’s the first step in setting the rent price. The property’s value is determined through several different methods, including the sales comparison approach, income approach, capital asset pricing model, and the cost approach. Any one of these methods can determine the property’s value, which is part of the equation when setting a rental price.
What Determines the Cost of a Rental Property?
A Las Vegas property management company will tell you that there are a handful of important factors that influence the price of your rental property. The top three factors are:
- Location
- Upgrades
- Size
When you’re trying to figure out a reasonable price for your rental property, location plays a significant role in your end decision. In a popular place like Las Vegas, demand is high for housing, ranging from seasonal to long-term rentals to primary homes and vacation homes. Las Vegas is also one of the biggest attractions in the world for people looking for world-class shopping, entertainment, and nightlife. There are different neighborhoods in the city, but Las Vegas has many conveniences. It is easy to get in and out of the city, and you can also easily reach areas beyond the city’s limits, such as the Grand Canyon and other natural areas.
Additionally, location and related amenities are features prospective tenants consider to be a top priority when they are looking for a new place to live. One feature they look for is parking. If parking is available on the rental site, that is a major bonus for renters, especially those living in a city. People also like to know that they live in a safe and secure location. If a home has newer or more comprehensive security features, tenants should know about it. Another aspect of location that’s important for tenants is whether or not they can easily walk places or walk safely around the neighborhood. If a place is near goods and services such as grocery stores, healthcare facilities, schools, attractions, and even the office, it is more desirable for occupants. Having a rental that is closer to these features means you may even be able to command slightly higher rental rates because you are offering your tenants a desirable place to live.
If the rental property is near other amenities or it is part of a community that offers features such as a dog park, tennis courts, or other recreational amenities, that will also make the location more desirable and justifies asking higher rental rates. In Las Vegas, the downtown area is the most desirable for rentals. The Summerlin neighborhood is also an in-demand location to live, and Mountain Edge is not far behind. If you want to learn more about the different places to live in the area, property managers in Las Vegas can act as wonderful resources to help match you with an ideal location to live.
Any upgrades that you have made to your rental property can also make it easier to ask more each month for rent. Many people consider modern conveniences such as air conditioning essential items in their next rental. A good Las Vegas property management company will recommend making some basic upgrades, at the very least, to attract and retain desirable tenants. If you have remodeled the kitchen, bathrooms, or bedrooms, which are considered the most critical rooms in a house, you can charge more for the rental. Installing new fixtures and appliances, such as upgrading the plumbing in the bathroom or renovating the kitchen sink, can also warrant higher rental rates. If you have put new appliances in the kitchen and bathroom, your property will be worth more, which means you can charge more money in rent.
Size is another key factor for your rental property. Renters want a space that is big enough for themselves and their families. The number of bedrooms that a place has is consistently listed as one of the biggest priorities for prospective tenants, as a Las Vegas property management company can tell you. As with any location, you’ll find a range of rental property sizes in Las Vegas. Studios are a common option for those looking to spend less money while living in a great city. One-bedroom apartments are one of the most popular options for solo occupants. Those wanting more space can choose from apartments, condos, and houses with two to three bedrooms. Most rentals in Las Vegas fall within the range of $1,001 – $1,500 per month. A few places are available for $501 – $700 at the lower end of the rental market, while other luxury rentals may cost upwards of $2,000 per month. Like other locations in the US, especially major metro areas, the average rental rate in Las Vegas continues to increase each year.
Why Charge a Good Rate?
While you’ll want to know a reasonable rental rate for your area, landlords should also understand why it is beneficial to charge a reasonable rental rate. To start, charging a rate that is not too high or too low can help you get good tenants. Additionally, people will be more likely to pay their rent on time. Approximately 84% of landlords say that payment problems are the biggest issues they face. Aside from just getting late rentals, landlords may deal with evictions, which can cost up to $10,000 in legal fees. Landlords who ask too much for their rental can also have trouble finding a tenant. Rather than gaining money each month from a rental, landlords who ask too much for rent can risk losing a source of their monthly income. To find a fair price, you’ll want to look at rental rates for other properties in the area. The size of the rental and special upgrades or features should be considered as well.
If you’re ready to start renting your place in Las Vegas, contact the best property management in Las Vegas to help you set a competitive rate based on essential factors such as size, location, and any upgrades you have made.
Voted “Best of Las Vegas” multiple years in a row, The Mor Group offers both real estate and property management services in the valley. Whether looking to sell/buy a home or potentially begin investing in long-term rentals, our trusted team can help. Contact Cassie and Adi, owners of The Mor Group, by calling 702-501-1085 or filling out our contact form here.
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