SANTO DOMINGO – Determining the right rental price is one of the most important decisions for any landlord. However, real estate specialists warn that many landlords continue to make mistakes that directly affect the profitability of their properties, prolong vacancy periods, and even hinder the attraction of reliable tenants.
An analysis published by Idealista states that setting the price of a rental property requires much more than looking at online ads or calculating how much money the owner wants to earn.
These are three of the most common mistakes.
1. Set the price according to personal needs and not according to the market
One of the most common mistakes is setting the rental price based on the mortgage payment, personal expenses, or the return the owner expects to obtain, instead of analyzing the actual behavior of the market.
Experts consulted by Idealista point out that an excessively high price can cause a property to remain unoccupied for months, while a price that is too low significantly reduces the profitability of the investment.
According to calculations cited by experts on the digital blog Occident, keeping a home empty for two months can represent a loss equivalent to about 17% of the expected annual rental income.
For this reason, professionals recommend studying the supply and demand of the area, the average marketing time and the specific characteristics of the property before setting any price.
2. Not relying solely on advertisements published on real estate portals
Another common mistake is to use prices published on real estate platforms as the sole reference.
According to rental management specialists cited by Infobae, the advertisements reflect the expectations of the owners, but not necessarily the real value at which the contracts are finally closed.
A property advertised for weeks or months may be showing that the price set does not reflect market conditions.
Experts from Alquiler Protegido explain that factors such as orientation, building height, state of conservation, energy efficiency, elevator availability, or real demand in the sector can generate significant differences between seemingly similar properties.
Therefore, studies from both specialized portals recommend using references to closed transactions, market reports, and updated comparative studies, instead of basing the decision solely on prices visible on the internet.
According to Rentila, another costly mistake is setting a price without properly assessing fundamental aspects such as location, size, condition of the property, amenities, renovations made, or the profile of the tenant you want to attract.
3. Not considering the actual characteristics and evolution of the market
Urbania also warns that the rental market is constantly changing and that a strategy that was valid two years ago may not be effective today.
Factors such as interest rates, available supply, cost of living, and residential demand can significantly alter the ability of potential tenants to pay.
The sources consulted agree that a competitive price is not necessarily the lowest or the highest, but rather the one that balances profitability, speed of occupancy, and access to tenants with proven ability to pay.
An incorrect price can cost more than a discount
The rental firm Flores y Burgosargues that the main mistake many landlords make is thinking that waiting indefinitely for a better price does not generate losses.
Recommended readings:
