What's your process for determining rental rates and occupancy levels?

I determine market rent by looking at what other rentals in the area are asking and what recently rented properties rented for, which is information licensed Realtors can access through their MLS. I also look to see how long it took properties to rent and if they had to reduce the asking rent. Then you have to factor in whether the rental is upgraded or not. Are utilities included? Or not included? I'll also factor in the parking situation and whether that is off-street, covered, etc. And another factor, in my area, will be whether laundry machines are available on the property and if the kitchen is a full kitchen or just a kitchenette. Coming up with market rent takes a lot of research and the ability to factor in a lot of variables.

I agree with the above; especially with utilizing software to assist PMs in their efforts such as CoStar and leasing software that help in the process. CoStar assist in market analysis. While leasing software keeps your data in tact for quick inquiries.

I would have a team member, knock on the door and have the tenants fill out a rental verification form. We'll return to pick it up if they are unavailable, with an indicated return date and time. Also, I'd shop for space in the areas I'd like to be.

I’ve used Argus, Kardin and Excel to create budgets which outline shortfalls in monthly revenue. It’s much easier to have all your cost in separated by SQFT to ensure monthly invoicing and variance reporting are accurate

I agree with this statement also; rates change with the market cut as a PM your Tenants will initiate an adjustment during renewals or business downturns. Most firms don’t make adjustments in monthly unless cost have escalated and those cost may include snow insurance and Propery taxes.

Your economic vacancy will be a bigger factor here. Just because you are 98% occupied doesn’t necessarily mean you are making your full potential rent. Be sure to keep in mind what your renewal rates are, your renewal rate increases and your GPR versus net potential rents. If your economic vacancy is under 93% you’re leaving money on the table.

Many firms send out periodic surveys to gauge tenant satisfaction and gather data for further analyses. In my experiences, tenant relationships with their PMs also impact rent renewals and new tenancies. Bad WOM can destroy one’s ability to keep their properties fully occupied.

If you’re giving out concessions your rents aren’t in line with the market. The only properties that should offer concessions are lease ups. Rents are fluid an should be adjusted almost daily depending on the goals of the property.

I agree; if tenants are not happy they won’t stay. It’s not unusual to add a few incentives to get a tenant to renew. However, I would recommend taking the feedback from data collected and applying a strategy such as SWOT before making to many adjustments so you don’t leverage yourself into a hole.

I think that turning the process into a math problem, you should think about who your tenants are and what they want. Then compare to what you want from them and all before you invest in the property. What is the neighborhood like. Is it mostly families? College kids? Singles? Elderly? Then align your purchase with what best meets with what you're looking for. If you want to avoid vacancy issues, leave the rent alone. If you have a good tenant, it's much cheaper to not raise rents, especially in this market. Not raising rents for years meant they stayed for years. I evaluated my costs, etc at the beginning and kept it steady. An extra $100/month is not going to pay the cost of a vacancy and/or even one lost month's rent