Property Management Blog

Pricing Your Torrance Home to Rent

Pinnacle Property Management - Monday, January 17, 2022

how to price your rental home

When marketing your Torrance rental home, pricing your rental should undergo an analytical process. You might have an amazing rental unit, a great advertising strategy and a perfect location, but if the price isn’t optimal, you’ll still find your rental home vacant.

Setting an accurate price will help attract tenants to your Torrance property and help you maximize your earnings and achieve your financial goals.

In this post, we are listing some of the top things to note when pricing your Torrance rental.

Use the Comparison Method

Find rental units in your neighborhood that are similar to yours and pay attention to their prices.

In addition to properties in the same neighborhood, you should also compare prices with properties that are a similar size, type and age to your property. 

For property size, check the prices of other properties that have the same number of bedrooms and bathrooms. This provides you with a rough estimate over the rent price range.

As mentioned, another area of comparison can be the type of Torrance property you own. One can’t assign the same rental amount for single family homes and multifamily homes. The former has higher rent rates given that this property type allows more privacy for tenants and immediate street access. So, if you have a single family home, you should be comparing rent prices with other single family homes.

Lastly, you can also compare your pricing with other properties that were built in the same period of time. For instance, if your Torrance property is newer, then compare it with other newer builds. 

marketers on a laptop

Best Sources for Comparison

If you’re wondering where you can find updated data for reliable comparison, you can spot them in the following sources:

1. Online Ads

By simply scanning popular property listing, sites such as Trulia, Zillow and Apartments.com, you can perform a thorough price research.

2. Property Management Companies

Given that most property management companies issue free rent price analysis, you can take advantage of this opportunity. Let a professional management team assess your Torrance home to get a fair idea of the ongoing rental value of your unit. 

Actively taking care of multiple rental homes gives property management companies an edge. They’re able to give a far better rent price analysis. They based it on your location, amenities and how your unit sizes up over other rentals in the area.

Factors to Consider when Setting Rent Price

You should adjust your Torrance rent rate depending on the level of demand the property has. No two units are exactly alike, so it’s best to review its features before deciding on the right rent rate.

rental home

Here are factors you can consider when rent setting:

  • Outdoor views - the more attractive the view outside, the better the rate. 
  • Modern facilities - the more property upgrades in terms of appliances and flooring, the higher the rent fee. Renters will pay more if you have top end kitchen appliances, for instance.
  • Property size - the greater the square footage, the more expensive the property becomes.
  • Extra amenities - the more amenities you can provide to renters, the higher the asking rent. Most are willing to pay for a parking space, storage room and luxury finishes.
  • Floor levels - higher floors are preferred by occupants, so you can raise the rent for the rental units located above the ground floor of an apartment complex.

Profit and Rent Setting

When you set a fair rental price, you’ll be more likely to own a profitable Torrance home. Consider your property expenses, such as mortgage payments, maintenance costs and marketing fees. 

Make sure that you end up with a profit even after your expenses. Otherwise, your Torrance rental home will stop being a good investment.

If your mortgage is high, then you might need to have a long-term view when weighing the profit of your real estate. If not, then you may need to take a step back and reevaluate your property pricing.

Checking Potential Tenant Interest

Notice the level of interest over your Torrance home. If few property showings are requested, you can take this as a sign that you need to review and adjust the rent rate accordingly. Most potential renters steer clear from properties that are priced too high. Make sure that the rent you assign is reasonable. 

Market Demand Controls Rent Prices

Market demand is dynamic. Renters may flock to your rental during holiday season or when newer attractions are built near to your Torrance home. Be alert with new developments and adjust your prices based on the current demand.

Often rental demand is dictated by the economy. Cheaper units are preferred during hard times when people are looking to save. In a good economy, people tend to splurge more and rent apartments with multiple amenities despite the higher rent rate.

Be aware of this reality and remember to raise your rental rate when demand is strong. When demand is low, you can always offer a discounted rent price to sign up new tenants. This strategy also will help you keep your existing renters. 

rental property single family home

Bottom Line

When marketing your Torrance rental home, finding the perfect rent price is extremely important.

You want to attract many prospective tenants to maximize your earnings and achieve your financial goals.

We hope this post about pricing your Torrance rental was helpful.

For more information, contact Pinnacle Property Management today.


Pinnacle Property Management
CA DRE # 01905815
22700 Crenshaw Blvd.
Torrance, CA 90505
Ph: (310) 530-0606
Fax: (310) 626-9786
Email: pinnacle@pinnaclepmc.com

We are open from 8:30am to 5:00pm M-F.

Copyright © Pinnacle Property Management. All Rights Reserved.
Contact Us | Sitemap