How should I price my property?
Many new rental property owners make a major mistake by overestimating the potential income from their rental property. They develop unrealistic operation budgets or projections using above market rents allowing for no rental discounts and anticipating virtually no vacancy or bad debt. When reality strikes, they are faced with negative cash flow, and ultimately they may even lose their rental property.
Setting the rent is particularly critical if you own a single family or condo rental unit, because the rent loss from an extended vacancy or one bad tenant can seriously jeopardize your entire investment. If your among this group of rental property owners, be conservative in setting your rents, very cautious in tenant screening and aggressive in maintaining your rental properties in excellent condition to attract good, long term tenants who pay on time. To avoid surprises, use a conservative budget for your rental property that anticipates rental income at 95 percent of the market rent for a comparable rental unit plus provides for a vacancy allowance of one full month each year. (Hire our firm and we highly doubt you will see a full month of vacancy average per year).
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Orlando Realty & Property Management
708 E. Colonial Dr., Suite 201
Orlando, FL 32803
Office: 407-641-5049 | Fax: 407-429-3857
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