Picking the Right Price for Your Rent

April 2, 2019 admin

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How Does Your Property Compare?

One of the easiest ways to assess your rental price is by searching for comparable properties in your area. Look for places online through the eyes of your tenants. If your price is too low, you might not be reaping the benefits of owning a rental property. Likewise, some tenants may actually shy away from contacting you about the property, as it may sound too good to be true.

White Blue and Gray Concrete Building — Image by Pexel

Are Amenities Worth the Price of Rent?

When it comes to amenities, tenants are looking for more bang for their buck. Some amenities, such as what schools and parks are located in the area, are hard to impossible to change. That being said, there are still several amenities that are easy to update. Amenities such as updated kitchens and bathrooms, off-street parking, and stainless steel appliances can increase the traffic to your listing. Including a dedicated laundry area can also help to meet the needs of potential tenants due to the convenience factor.

Location, Location, Location

You might think that being within walking distance to grocery shopping and parks is ideal. Some tenants may share your views and be willing to pay for the convenience. However, some potential tenants may prefer local taverns and malls, being more prone to pay higher rents for properties in their desired location. Living close to work, school, and entertainment can often result in tenants who are willing to pay a premium rental rate.

Response Rates

Placing ads for your available rental property online and in local newspapers is a great start. However, if some time has passed and you have not received many requests to view the property, you might want to revisit the rental price listed in your ad. If your property is located in a desirable location and has all of the bells and whistles that tenants are looking for, a lack of response can be due to charging too high of a rent. This can be easily remedied by comparing similar rental properties and adjusting the amount you charge accordingly. An increase in response rates indicates that you are on your way to finding a great tenant.

Rent and Profit Assessment

One of the main reasons why people purchase rental properties is the source of additional income. Setting the monthly rate for your rental property too low can result in a large potential pool of tenants. However, this can mean that your operating costs may not be covered. Setting the rate too high can mean a lack of tenant interest. This can lead to you having to cover the costs of the mortgage, repairs, and insurance while your property sits vacant. It is recommended that the monthly rental price contributes to paying down your mortgage. Don’t forget to pay yourself for your own landlord services.

Gold-colored Coins Near Calculator — Image by Pexel

Conclusion

With so many things to consider, identifying the right monthly rate for your rental property can be overwhelming. Fortunately, the folks over at The Property Manager are quite skilled when it comes to the rental market and ensuring that your property is priced just right. Let them put in the work so you can relax, knowing that your property is in safe hands.