It’s important to understand what “market rent” means. Market rent is the going rate for similar properties in your area. This includes factors such as location, size, amenities, and condition of the property. At The Apartment Source, we have many ways of compiling data to ensure all of our landlords have their investments priced correctly. Through our proprietary marketing and large referral networks, we often provide our clients with rents above the average rate of the neighborhood. In order to increase exposure and maximize investments, landlords should list with The Apartment Source, not just an MLS broker.
Once you have a better understanding of market rent, it’s time to make adjustments to your own rental rates. If you’re charging significantly less than market rent, it’s best to raise the rent gradually over time. This will allow current tenants to adjust to the increase and avoid any potential issues or loss of tenants.
Another way to increase rental income is to make updates and improvements to the property. This can include small cosmetic changes like fresh paint or new appliances, or larger projects such as remodeling the kitchen or bathrooms. By making the property more desirable, you’ll be able to charge higher rent. Check our newest blog on why landlords should upgrade their properties.
It’s also important to review your lease agreement and make sure it includes all necessary terms and conditions, including rent increases. This will protect you legally and give you the flexibility to make changes as needed.
Charging below-market rent can be detrimental to your income as a landlord or property owner. By understanding market rent and making adjustments to your rental rates and property, you’ll be able to earn a fair return on your investment and attract high-quality tenants.
Contact our Landlord Services Department today to ensure your properties are priced correctly to maximize your investment.
The Apartment Source | Landlord Services Department
773.404.9900 or Info@ApartmentSourceChicago.com