Everybody knows that San Francisco has high rental rates. It’s by far the most expensive city in California. It actually ranks as one of the most expensive in the entire country. The next closest is New York City. Specifically, Manhattan.
As of September 2018, the average rental price for a one-bedroom apartment in San Francisco is $3,340/month. For a 2-bedroom apartment, the price was $4,550. Setting rental property prices in San Francisco is not easy. Deciding a price can take a considerable amount of time. It also takes market research, knowledge, and patience.
When determining the listing price of your rental, start with the market value. Not aware of the current value of your property? Do some research online, or hire an appraiser. The appraiser will perform an assessment to determine the property’s current market value. Afterward, a good rule of thumb is to price your rental by multiplying 0.5% to 0.8% by the home’s value.
For instance, imagine your property gets appraised for $700,000. Then, your rent range would fall in between $3,500 and $5,600 ($700,000 x 0.5% = $3,500 and $700,00 x 0.8% = $5,600). If you own a new or recently renovated property, the higher end of the range is applied. Also, if the apartment is in a sought-after San Fransisco neighborhood.
Most San Francisco neighborhoods are defined by their unique identity, individuality, and charm. The neighborhoods that tend to be the most expensive for renters are SoMa, Nob Hill, Russian Hill, and Mission Bay.
You can charge top dollar if your apartment is in a neighborhood with the following characteristics:
Fortunately, San Francisco isn’t only known for housing costs. The city also boasts some of the best restaurants and eateries in the entire nation. There are countless options, including ethnic cuisines from around the world. Being near restaurants, business and other major attractions makes your property more appealing.
Analyze the rental price trends and fluctuations in your neighborhood. This will help accurately price your rental. Look at apartment listings in your exact neighborhood with similar square footage, features, amenities, and overall condition of the home. When you have found at least three apartments with similar characteristics, perform a calculation to arrive at a price per square foot.
Calculating the price per square foot can make your task more precise. Take the listing price of the comparable rentals and divide it by the total square footage. After completing this calculation for the three properties, you’ll come up with an average price. Finally, take the average price per square foot and multiply it by the square footage of your rental property.
Using the above calculation you will arrive at a specific price. However, additional modification to the amount may be necessary. For example, the comparable properties used to determine a listing price may have fewer amenities than your own apartment. If this is the case, consider which amenities and features you offer.
Research proves that rentals furnished with comfortable, high-end furnishings are able to charge up to 30% more. Blueground provides fully-furnished, serviced San Francisco apartment rentals. The furnishings are chosen by our experienced interior designers. We understand all of the property management needs and preferences of both landlords and renters. We screen potential tenants to find the best person for your property. Many renters are looking for a beautifully furnished home in one of the best San Francisco neighborhoods.