How are the rents set?
Rates for long-term rentals are based on the rents for
comparable properties in similar locations. Since
approximately fifty percent of residential property on the
Monterey Peninsula is non-owner occupied, this is relatively
easy to accomplish. We take a look at not only the
properties that are managed by our company, but those
managed by other companies and owner-operators.
Rates are not
set by totaling your mortgage payment, your
taxes on the property, and your expenses! While it might
seem reasonable to attempt to set your rate in this way,
keep in mind that there is no correlation between what a
property costs an owner and what it will generate in rent.
The market sets the rates in our free-market society!