How Much Should I Charge For My Sacramento Rental Property?
admin / November 6, 2020
How to Decide How Much Rent to Charge for Your Sacramento Rental Property
When you are trying to determine how much rent to charge for your Sacramento commercial rental property, the goal is to tip the scale towards the middle of two objectives. One, maximizing your monthly rental income; and two, keeping your price competitive enough to capture the interest of high-quality potential renters. To make the most informed decision, you need to have a comprehensive understanding of the Sacramento commercial property rental market.
Understand the Sacramento Commercial Rental Market
No matter the worth and beauty that you might see in your property, market demands are your customer—and we know that the customer is always right. A competitive commercial rental property listing is one that is related to market changes and regional trends. Due to the Coronavirus, typical commercial rental market patterns have been drastically interrupted. This has primarily impacted office and retail spaces, which is seeing more vacancy.
Location. Location. Location.
Unsurprisingly, the most significant variable that informs commercial rental property prices is location. Take the time to research nearby listings to scope out your competitors and take a page from their playbook. Similarly, different property types attract different tenants.
For example, commercial property for a retail vendor would likely be fitted with a storage room or backroom for extra supplies, as well as large storefront windows. On the other hand, office buildings attract tenants who seek accessibility and proximity to hospitality businesses or restaurants.
Condition of the Property
Another factor is the condition of the commercial rental property. Luckily, that is a factor in your realm of control, and if investments need to be made to spruce up aesthetic aspects of the property, it may result in much higher curb appeal, which means that you can ask for higher prices. If you list the price too high and your property is not up to par, you’ll notice quickly that you’ll have trouble finding a good tenant. That’s why it’s a good idea to consider upgrading interior aspects as well.
Conduct a Comparable Rental Analysis
To get the best understanding of where your property stands in comparison to competitors nearby, conducting a comparable rental analysis will provide you with tangible insights based on current market peer performance.
To get the most accurate and trustworthy information, hiring a professional property management and brokerage firm that specializes in comparable rental analysis in Sacramento is your best option. With the help of professionals, you will be able to confidently charge rent at the best price and keep tenant turnover or vacancy low.
Laverty Chacón has been providing excellence in commercial property management for over 30 years. Our team of trained professionals are experts in the property management field as well as the brokerage side. We are incredibly familiar with the Sacramento area and surrounding regions and are continually watching and examining the latest pricing trends—especially during these unprecedented times. Laverty Chacón can bring clarity in an important decision-making process. If you are interested to learn more about the value of comparable rental analysis or have any other commercial property need, you can reach us by calling 916-722-0333.
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