ESTABLISHING RENTAL RATES
- Once you are familiar with the demographic and economic outlook for the local market, as well as the features of the subject property and its competitors, you can begin to determine rental rates for the property.
- When considering a pricing strategy, it is important to understand any income guidelines or restrictions for the community. Some communities are market rate, while others may have a government mandated affordable income component that sets limits on pricing. When dealing with affordable income communities, the following factors may affect the site manager’s ability to set competitive pricing:
- Income restriction (e.g., low-income, or ultra-low-income housing)
- Section 8
- Communities with 80% market rate and 20% affordable
- Tax credit properties