First Time Setting Rental Rate - Single Family Home Portland, OR

[Carrie Rude]

We are landlord newbies listing our very first rental property this week. We are in a time-crunch to get our current residence, a single-family home, under a lease agreement as a contingency to purchase our next residence (which is already under contract). It is critical that we set our rent rate competitively to secure a tenant within a couple weeks. From what we hear from fellow landlords in the area, there is high demand for rentals, so homes that are well-priced are going quickly.

This is the address: 4726 NE 89th Ave Portland, OR 97220.

Brief description: "Charming 1920s bungalow includes 4 bedrooms and 2 full baths with tasteful updates that combine classic features and modern amenities. The main floor includes an open living/dining/kitchen area, two bedrooms, and a full bathroom. Special touches include hardwood floors, arched doorways, decorative molding, granite counters, and stainless-steel appliances. The fully-finished basement provides lots more living space with a family room, two additional bedrooms, and the second full bathroom - complete with washer/dryer. The lower level has durable vinyl-plank flooring and plenty of natural light with egress windows. A bonus "mud room" area at the back of the house features french doors leading to the stamped concrete patio in the fully-fenced backyard. The private outdoor space includes mature trees, planting beds, and storage shed. The paved driveway provides off-street parking and is long enough for two vehicles. This gem is conveniently located in a nice neighborhood near The Grotto and Rocky Butte, I-205 and I-84 for commuting, and close to groceries, restaurants, and coffee shops."

We are working on getting high quality photos, but it's challenging since we are currently living in the home with our 3 children and dog. I will include the exterior ones we have for now.

Rent-ometer says $2,520 average. What do you recommend?

Any advice is appreciated!

[Nathan Gesner]

You need to research. Check Zillow, Zumper, Apartments.com, REALTOR.com, Craigslist, newspaper, facebook, and other sources. Try to find homes comparable to yours in size, location, and amenities to see what a good market rate may be. When you narrow down the list, you may even "secret shop" a few of them to get an idea of the competition. You should be able to determine a pretty accurate market rate within a day or two.

I agree with Matthew that you should seriously consider a property manager. A good one will save you more money then you'll ever spend on their services by reducing vacancy, keeping up on market rates, selection of quality tenants, stopping problems quickly with solid policies and procedures, knowing/complying with the law, and much more.

Remember: cheaper doesn't mean you'll make more money.

You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!