Skip to main content

Podcast

  • Sub Banner Image 1

Welcome to Property Management Brainstorm, the ultimate podcast for property managers, PropTech ventures, and real estate investors! Join industry expert Bob Preston as he brings you the latest trends, best practices, and invaluable guidance in the world of property management. Whether you're just starting or thriving in the business, Property Management Brainstorm is your go-to destination for all things property management. Please click the "more" button in our episodes below to view the episode notes, listen through the website audio player or the video link, and follow along with the whole episode transcript.

Five Minute Friday #7: Establishing the Rental Rate

By Bob Preston Thursday, December 5, 2019

Yes, property owners want to maximize their rental income. But if you set the monthly rent too high and the unit stays empty, no one generates any revenue at all! So, how do you decide on a monthly rental rate that keeps the property owner happy AND competes in the local market?

On this episode of Five Minute Friday, Bob explains the importance of correctly setting the monthly rental rate for a property. He discusses how the real estate market is influenced by supply and demand, location, amenities, and seasonality, offering insight around using ‘market comparatives’ to determine the rental rate for a given property. 

Bob goes on to share how sites like Zillow have made prospective renters savvy to fair market value, what that means for property owners, and how North County collaborates with owners to set the monthly rental rate for a property. Listen in to understand how time of year impacts the monthly rental rate and learn how to adjust the rental rate if a property is not generating significant interest.

Topics Covered

[0:00] Why the monthly rental rate is one of the most important decisions to make about a rental property

[0:10] How the market ultimately decides the monthly rental rate

[0:18] How the real estate market fluctuates based on supply, demand, location, amenities and seasonality

[0:32] Using ‘comps’ as a benchmark to set the rental rate for a property

[0:54] How prospective renters have become savvy to fair market value + what that means for owners

[1:19] How North County Property Group collaborates with owners to set the monthly rental rate for a property

[1:34] What to consider if a nearby rental is set at a lower monthly rate 

[1:54] How time of year impacts the monthly rental rate

[2:25] How the response we get to a listing in the first week tells us if we’ve set the rent rate correctly 

[2:42] How North County initiates rent reductions if a property is not generating interest

Connect with Bob 

North County Property Group

Resources Mentioned

Zillow Zestimate Tool

Best Practices for Renting Your Home: Learn the Pitfalls and Safety Nets from a Pro can be found at https://www.ncpropertygroup.com/ebook.

This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Play Podcasts, Stitcher, Spotify, and YouTube.



Share

Author

post.authorName
Bob Preston
President & Broker
Bob Preston is the lead consultant and creator of Property Management Brainstorm, founded to specialize in guidance for teams building property management companies and real estate investment strategies. Bob is a nationally known figure in the property management industry with over 20 years of experience in building and growing property management companies. He was the founder and broker/owner of San Diego's leading and property management company, North County Property Group, before successf...
Bob Preston is the lead consultant and creator of Property Management Brainstorm, founded to specialize in guidance for teams building property management companies and real estate investment strategies. Bob is a nationally known figure in the property management industry with over 20 years of experience in building and growing property management companies. He was the founder and broker/owner of San Diego's leading and property management company, North County Property Group, before successfully negotiating the sale of the business to PURE Property Management in 2022. He then remained with PURE as Western Regional Director, during a period of explosive growth for the company, overseeing operations for 28 branch office locations and over 12,000 doors. More recently, Bob has decided to focus on his consulting business, Property Management Brainstorm, to help others succeed in this dynamic and exciting industry.
back