Are You Charging Your Residents Too Much Or Too Little?
How you price your community makes a huge impact on your vacant or occupied residences. Increasing rent prices is something that all community managers will likely have to do throughout the years, but how do you know how much to increase, or how much will be considered “too much” for your residents? You need a fair price, but your residents need a fair price, too. Undercharging for your leases could fill up those vacancies, but it may leave you in the red. Overcharging might yield more profit, but you’re unlikely to fill your residences with happy community members willing to stick around.
The first thing you should do when creating or adjusting your leasing prices is to look at the competition. This will let you know where you stand on the market, and where a good base line may be. Look at comparable residences in your general community, and what others are willing to pay to be a part of these communities. If your pricing is wildly out of this general range, it might be too much for residents of the area or it may be too low and lead to prospective residents imagining red flags.
Next, you’ll want to consider any amenities or special things you offer. Perhaps a similar community in the area charges a bit less, but they don’t have a pool, a playground, well-manicured community spaces, or the offering for trips or excursions. The more amenities you offer, the more you can value your spaces and the idea of being a part of your community.
Last, you’ll want to consider how in demand your residences are. Are you getting a number of viewings each week, and are those viewings leading to leases? This may be an indication that your community is even more valuable than you thought. If your community is seeing view visitors and leases, this could be a sign pointing to a rent charge that is too high.
At OccupancySolutions.com, we want to help you to set the right rates for your residents and your communities. To learn more about figuring out what your ideal rental charge may be, check us out at OccupancySolutions.com today.