Why Rental Pricing Strategies Are So Important

April 29, 2024

Are you a property owner who is considering renting out your home? If so, you are probably starting to think about pricing strategies. Find out why pricing your rental property correctly is so important, how to do so, and who can help you.

What to Consider When Pricing Your Home for Rent

Rental pricing takes into consideration many external factors. First of all, it is essential to understand the rental market where your property is located. This will help you maintain a competitive edge with other rentals in the area. Is the area growing or shrinking? What jobs are available nearby for potential tenants? What economic factors could impact home prices and rental rates? What time of year are you going to start renting out your home?

Another factor to consider is your personal cash flow. Decide what level of profitability makes the rental worth the effort. It’s also crucial to factor in management fees (without overpricing the home). Next, ensure the rental has a positive cash flow. Evaluate amenities in the home and in the neighborhood. In our area (Kitsap County), it's also important to look at your home's proximity to the Naval bases and the ferries. Many people look at housing options in relation to their potential commute time. Understanding the value of various amenities and nearby conveniences will help you properly price the home and attract tenants.

Why Pricing Matters

Pricing is also important from a legal standpoint. First and foremost, there are laws that must be followed when renting out a home. Every landlord should have an understanding of local, state, and federal fair housing laws. Regulations vary by state. For example, Washington has specific laws in regard to how security deposits are assessed, held and returned to tenants. Other laws may apply to pricing strategies, such as late fees or charging for damage. Rent increases, lease terminations, or evictions require very specific guidelines to be followed.

Therefore, it’s essential to consider all these legal factors when pricing your home for rent. Awareness and compliance with the laws are one of the biggest benefits of utilizing a property management company. If that is something you are considering, check out our experts here at Windermere Property Management.

How to Find the Correct Price for Your Rental

There are several different pricing methods that a landlord can choose from when listing a rental. For example, you might decide to post a rental rate that is competitive with the market and also includes extras (such as certain utilities) in order to provide additional benefits and potentially rent it out quicker. Landlords who are looking to fill a vacancy quickly might opt to list the home below market rate. Measures can be outlined in the lease for rental increases over time. Conversely, the rental may be in a highly desirable area offering many amenities. In that case, premium pricing might be a smart financial move. Alternatively, you might decide to strategize your pricing by offering flexibility. With this strategy, the landlord and potential tenant have the option to negotiate different elements and terms of the lease. Whichever pricing strategy you use, it’s imperative that you research the rental market and fully understand landlord-tenant laws in your area.

What Happens if the Pricing is Off?

If a home is not priced properly, you run the risk of two problems. First, if the rental is priced too high, it could sit unoccupied for an extended period of time. Conversely, if a unit is priced too low, you run the risk of not maximizing potential earnings.

If you know how many months of lost rent in an unoccupied property can be offset by a premium price, perhaps that pricing strategy is worth the risk. If you’re okay renting slightly below market value to attract a long-term renter, perhaps the money lost each month is worth the lack of turnover. Each person has their own way of looking at the pros and cons of a pricing strategy.

Benefits of Properly Pricing Your Rental

Ultimately, the goal is to identify the proper price point that will get your home rented out quickly to tenants who will respectfully maintain the property. If you’re struggling to figure out pricing strategies and market trends here in Kitsap County, Windermere Property Management is a valuable resource. Our team of experts can help increase your profit and take the legwork out of managing a rental. Not only will our property managers help you pinpoint an appropriate pricing strategy, but they can also list the home, screen potential applicants, and take care of maintenance and repair work.

While preparing your property for rent, consider which of these pricing strategies works best for you. You can also reach out to a local expert to ensure everything from pricing to lease signing goes smoothly.

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Managing Expectations When Renting Your Home

August 19, 2025

Renting out your home often comes with a mix of emotions and expectations. Managing your expectations as the owner and those of your tenants is a crucial part of the rental process. Here are some tips to help you achieve successful outcomes. Understanding the Rental Market Before renting out your home, do your research. Look at your local rental market. Are there a lot of homes for rent in your city? What about in your neighborhood? Do they sit unoccupied or are they rented out quickly? What is the average rental price for a home that is similar to yours? It’s important to set competitive rental prices while understanding supply and demand. If you work with a reputable property management company that has local expertise, they will know the market well and will properly price your rental. Preparing Your Home for Rent Ensure your home is rent-ready by prioritizing safety. As a landlord, you will be required to keep the premises fit for human habitation . This Washington state law encompasses many safety standards and home repair projects. For example, landlords must make sure that carbon monoxide and smoke detectors are in working order, as well as major electrical and plumbing fixtures and appliances. Now is the time to make any necessary repairs and deep clean your property. Whether you are renting your home furnished or unfurnished, everything should be in good condition. Check out our article for tips on preparing your property for rent . Additionally, you may want to consider some budget-friendly upgrades to enhance your home before you rent it out. It can increase the value of your home and attract more attention. Setting Realistic Financial Expectations While an investment property can be financially beneficial, we highly recommend calculating potential rental income and expenses. It’s important to understand the costs of property management and maintenance. Also, you’ll want to prepare for potential vacancies and financial fluctuations. Consider the legal side of rental properties as well. Every landlord should be familiar with local, state, and federal fair housing laws . For instance, Washington has specific laws about how security deposits are assessed, held, and returned to tenants. Increasing the rent or terminating a lease requires adherence to specific guidelines. Therefore, you’ll want to take time to do your research and consider these legal factors when pricing your home for rent . If the legal side of property management or the time required to effectively manage a rental seems overwhelming, you may want to utilize a property management company. While this does come at a cost, it can be beneficial , saving you time and money by offering professional marketing, preventative maintenance, built-in tenant screening, and property managers who are well-versed in landlord-tenant laws. Check out our local experts here at Windermere Property Management . Communication and Relationship Management After screening potential tenants, conducting credit checks, and calling references, it is essential to foster positive landlord-tenant relationships with your new renters. This begins with clear, open communication. Setting expectations with tenants from the start paves the way for transparency and builds trust. Renting out your home requires both project management and relationship management. This means that you are ready to handle sudden, needed repairs, answer contract questions, and deal with unexpected issues in a prompt and professional manner. Long-Term Planning It’s wise to set long-term goals for your rental property from the start. Renting out your home for a couple of years while you’re living elsewhere comes with one set of expectations and requirements, while renting it out as passive income for the next 10+ years is very different. Additionally, if you plan to sell it within the next few years, you will also have certain objectives to meet regarding upkeep and preserving or increasing its market value. Your local rental market may also change, so creating a plan that is both proactive and flexible is the key. If you have any questions, our property managers are here to assist you.