Does San Diego Property Management Success Mean Obtaining the Highest Monthly Rent?

Your San Diego property manager will make recommendations on what you should charge in rent based on the market, the competing properties in that market, and the strengths and challenges of your unique rental property. Everyone wants a rental value on the higher end of what you could be charging. 

You cannot look at the rental amount as the only measure of investment success. Dropping the amount of rent you’re asking by even $100 a month may seem like a loss. But, if it helps you to avoid even month of vacancy, you’ve already earned more by charging less. 

Here are some considerations you should make before pricing your property. 

Rents and the San Diego Real Estate Market 

Most rental property owners and San Diego property managers would agree that rents in our market are already pretty high. They’ve gone up steadily over the last few years, even after a pandemic. Those high prices are due to a number of factors, including the San Diego real estate market, general inflation, and the high demand for rental housing that’s far outpacing the current supply. 

Tenants are frustrated with the high costs of everything. They’re spending more than they want on gas, food, and general products and services. Finding anyone willing to pay more than they should to rent a home in San Diego will be difficult, even in a market that’s so favorable to owners. 

Rental Price Impacts Vacancy and Turnover

Asking for high rents that are at the very top of the rental market seems to be a good way to earn more. But you have to know the San Diego rental market. If other homes, similar to yours, are renting for less, qualified tenants will usually choose those homes before they choose yours. 

When you’re overpriced or at the higher end of the range for comparable properties, you may face a longer vacancy. Tenants will hesitate before renting your home. They’ll continue looking for more value. 

Vacancy is expensive. This is an important consideration when you’re negotiating a lease renewal as well. When you have good tenants in place who pay rent on time, take care of your property, and follow the requirements of the lease agreement, you want to keep those tenants. Retention means less vacancy and turnover. That’s better for your budget. 

Most tenants expect a rent increase at lease renewal time. But you shouldn’t raise your rent as high as the market will allow. Give tenants a reason to renew. You can establish a new rent that can be higher than what you’re currently charging but slightly lower than the top end of the comparative rental values you’ve gathered on other homes. Remember to always raise your rent within the requirements of California’s rent control laws as well. 

Incentivizing Tenants to High Priced San Diego Rental Homes 

Please contact us at Onyx Property Management for more information. 

Experienced San Diego property management professionals, Onyx Property Management serves the entire county, including San Diego, Chula Vista, Oceanside, Carlsbad, and the surrounding areas.