Friday, July 13, 2007

Position Your Property with InfoTracker

One of the most important decisions you can make when leasing your income property is accurately positioning it within the rental market. Given the dynamic real estate trends that we are currently experiencing it is a challenge to determine the appropriate market rent that will minimize the days-on-market, increase tenant retention, and maximize your cash flow. In order to help you make the most informed decision, InfoTracker provides the analysis of the statistical rental data of more than 20 property management companies within Placer and Sacramento counties. This unique compilation of valuable information is released once a quarter in The Landlord Today and is exclusively available to RNB Property Management. Because RNB Property Managers have direct access to the InfoTracker database which includes detailed information such as age, square footage, deposits and other property information they can accurately depict today’s current market rents through an RNB Comparable Rental Market Analysis.

So you have a CRMA in hand, now what? What is most important to you? Tenant retention? Vacancy rate? Survey says… “Cash flow”. In reality you have three choices: position yourself above, below or at the current market rents. Some believe that if you position yourself above the rental market you will attract a higher class of tenants because naturally they can afford higher rents but you risk having fewer applicants and more days-on-market. Others have found that a higher rent dissuades more qualified applicants because they have the right to be “choosy” which in turn leaves you with a pool of unqualified applicants desperate to pay the above market rent. Those interested in less risk may opt to compete head-to-head with other rental owners. Here the best in show wins. You must optimize the physical appearance of your property because the cleaner and more properly maintained the sooner it will rent. We have found that conservatively positioning yourself slightly below the rental market allows for tenant retention, lower vacancy rates and ultimately higher cash flow. We all know all too well the cost of turnovers. In the end the choice is yours but before you decide to position your income property within the rental market make sure you have the numbers in hand.

For more information regarding RNB Property Management, Inc. please call
916-435-2424 or visit us online at www.RNB2day.com or
Property Management Rocklin

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