How Often Should Landlords Review Rental Pricing?
If every rental property were priced the same regardless of size, features, and included amenities, there would be no competition. It also just wouldn’t be fair! Rental markets are constantly changing. Prices that made sense a year ago may not reflect current market conditions. This is why a regular rental price reviews can help owners remain competitive within their community. How can a landlord in the Augusta area utilize competitive rental rates while protecting their profitability, though?
Sherman and Hemstreet is here to help. Our property managers are local and regional market experts. We can help you understand why you shouldn’t charge the same rental rates forever, how often you should evaluate rental pricing, what you should consider in your rental price, and more.
Why Your Rental Pricing Shouldn’t Stay the Same Forever
Wouldn’t it just be easier to set your rental pricing once and then just leave it to focus on other aspects of property management? Theoretically, yes. In reality, that approach can cause you to miss changes in the rental market.
While you are not required to raise rent each year, it is a good idea to sit down periodically to review market statistics, inflation rates, and local trends. Keeping rent stable may encourage good tenants to stay longer. However, if you are no longer making a profit, then it’s time to make some adjustments. You can do this in small increments to avoid surprising your tenant and inciting a vacancy.
If your rental price is too low, you may not attract the type of tenant that you want to live on your property. If your price is too high, you may not be able to attract any tenants at all. Therefore, losing income while your property sits vacant. So, how often should you evaluate these statistics, rates, and trends to determine your perfect rental price?
How Often Should Landlords Review Rental Pricing?
One of the most common times to review rental pricing is during the lease renewal process. Typically, this is every 12 months (or whenever their specific lease term runs out). You’ll want to do this about 90 days before the lease is up. Be sure to check your local laws on any timely requirements regarding lease renewals and rent increases.
This is a great time to approach the subject, too, because the tenant may even be expecting it. It also gives tenants time to evaluate their options and notify you if they decide not to renew.
Other times that you could increase your property’s rent could be when you make significant upgrades, such as adding new appliances or renovations. Or, as briefly mentioned above, you could increase rent when other rentals in your market increase theirs. Or, you could increase rent due to an increase in operational costs such as insurance, property taxes, or maintenance costs.
Whether its for one of these reasons or just to reach your personal financial goals a bit quicker, just be sure to approach these increases with a strategy and timely notice to your tenants.
Other Factors That Influence Rental Price
So, now you know that you 1) should adjust your rent if and when needed and 2) when to adjust it. What else should you consider when adjusting rental pricing?
Look at Comparable Properties
Before you increase, decrease, or keep the same rental price, you want to make sure that your price is fair yet profitable. One of the first ways to do this is by looking at properties similar to yours in your area. For example, if your property has a small yard and is a 2 bedroom, 1.5 bathroom single-family home, don’t look at the rental prices of 4 bedroom, 3 bathroom homes with huge yards!
Also, rent is different in each city. If your rental property is located in Evans, a similar property in Augusta or Grovetown may be able to get away with a higher (or lower) rental price than your property.
Property Improvements and Upgrades
Property improvements are another factor that can support a rental rate increase.
When comparing properties, you may see a similar property to yours that charges more than you do. Why? How? Upon further investigation, you may see that the property has a bigger garage and more street parking. Or, maybe it comes with smart home technology, appliances, and is walking distance to a few local coffee shops. These are all things that tenants will pay more for!
Local Demand in Augusta
The Augusta and Evans rental market is quite competitive. The closer your rental is to local landmarks such as Downtown Augusta, The Augusta National Golf Course, Evans Towne Center, and Fort Gordon, the more you will be able to charge for rent, within reason.
Over the past ten years (from 2016 to 2026), Augusta has seen around 5,000 new residents. They need a place to stay! This increase in population also takes part in your strategy for setting a rental price as it drives up the demand for places to stay.
How Professional Property Management Helps Augusta Owners Make Pricing Decisions
Adjusting rent is a process, not just a quick decision that you make because you need more income from your investments. You have to abide by local rent laws and run the risk of vacancy by increasing too much or profit loss by charging too little.
Professional property managers use current market data and local experience to help owners determine whether a rental rate remains competitive. Regular pricing reviews can help reduce vacancy risk, improve tenant retention, and support long-term profitability.
For rental property owners in Augusta, Evans, and Columbia County, working with an experienced property management team can provide valuable insight into local market trends and pricing strategies. At Sherman & Hemstreet, we help owners make informed decisions that balance occupancy, tenant satisfaction, and return on investment. Contact us today for your property management needs.