How To Decide How Much To Charge For Rent?

As a landlord, you need to know how much money to charge for your property. It needs to be enough to cover your expenses, but not too high of a price that nobody wants to rent from you. It can be a tricky process if you are not experienced.

One of the many responsibilities of a property management company is determining what your property should be rented for. I will let you in on a couple of the techniques we use to ensure you are getting the maximum return on your investment.

What Determines a Rental Property’s Income?

Many factors in how much your property can rent for are out of your control. You will need to research the following areas before you determine a monthly rental rate:

1. The Features of Your Property
2. The Rental Market
3. The Location
4. The Economy in Your Area

This can take time to research and can also change very quickly. A property management company knows this information like the back of their hand since they are working out in the market every day. It may be a good idea to ask them for some help in this area.

Look At Your Competition 

Taking a look at other properties similar in size and location can help you determine how much to charge for rent and give you a better idea of how long your property will sit vacant. As a general rule of thumb, the less you charge compared to your competition, the more quickly it will be rented out. You will have to weigh the pros and cons.

CONSIDER YOUR PROPERTY’S AMENITIES

Looking for features that make your property stand out and highlighting them for potential tenants to see is so important. Important features or amenities like an in-unit washer and dryer or two-car garage may be worth more than you think.

Here are some amenities that can add value:

• Parking: Having an assigned spot or garage space is a huge bonus to many renters. Suppose you have parking while your competition does not; add money onto your rental rate.
• Walkability: Being within close proximity to public transit, grocery stores, or entertainment is something that is very important to renters. A desirable location can increase your property’s value and should be leveraged to increase your rental rate.
• Outdoor areas: Not every rental has an outdoor space. Even having something small like a balcony or small patio can increase the amount you can charge. If you have a pool or huge yard, it can add hundreds and help draw prospective tenants.

Pricing your rental property is the key to making significant returns. Don’t just take a guess and hope for the best. Hiring a property manager will help take the pressure off you to do things outside of your area of expertise. We have years of experience and a proven record of pricing homes right. If you have questions, contact us to get the process started.