Dynamic Pricing Model – Rental Properties – April 2024

Your property is more than just real estate—it's an investment, and maximizing your return is essential. However, a common misstep among property investors is setting rental prices at the peak level observed in the market and waiting for a tenant willing to pay that price to emerge. The media frenzy often exacerbates this situation.

When listing your property for lease, your foremost objective should be to secure a qualified tenant and swiftly fill the vacancy. With each month of vacancy, your potential earnings dwindle as you cover expenses such as the mortgage, condominium fees, yard care, snow removal, vacant inspections, and operating utilities, none of which will be recovered. Prospective tenants are unlikely to pay a premium when similar units or properties are available at lower costs. Therefore, adhering to market standards in pricing is crucial.

Properties listed above market value without adjustment find tenants only 5-8% of the time, incurring additional expenses while remaining vacant. In contrast, our dynamic pricing model boasts an 90% success rate in attracting quality tenants and filling vacancies within a week or so.

This approach ensures you don't miss out on income by staying within the actual market range. In fact, renting slightly below market value to avoid vacancies can yield higher annual returns in the long run. Conversely, holding onto a property at an inflated price unsupported by the market leads to financial losses.

Continuously analyzing the market and pricing your rental based on actual renting trends is essential.