How To Set The Best Rental Price For Your Property
You need to set a price for your rental when you first put your property to the market or when you have a vacancy at your existing rental. Several considerations can help you set the right price for your property. The right price will draw potential tenants to your property and will also produce you some income. You want to cover all of your expenses, from mortgage to maintenance at the property. And you want to end up with good cash flow, money to cover your time and generate your investment income.
But the question remains: if you rent too low, you are missing out on revenue. When you overprice, your property can be empty for weeks or months. Keep reading to know how you can set the best rental price for your property.
Do your research on the web. It’s that simple. Check what rent others are charging in your area.
Many sites use listing data, which shows you what other landlords want to get for their properties, and not what rent they get for their properties. However, it still gives an idea. There are plenty of websites and classified portals that can help you find the latest rates.
You can use several websites such as:
Consult With Other Landlords
Discuss with other landlords in your area, with similar places to yours (same number of bedrooms, bathrooms, size, and amenities). Avoid landlords who haven’t changed their rent from the last 10 years and are least interested.
You should also refer to real estate brokers. Make sure their brokerage has experience with rentals before consulting an agent. If they just sell, they won’t learn anything about the rental market.
Set The Rental Price According To The Market
Usually, tenants tend to increase their rental price if the home has new appliances and finishes, a pool, etc. Factoring those things into your rent is great, but bear in mind how much you increase it. Using the $150 asking price for a swimming pool isn’t going to support the rental home.
Be careful what other units have in the field. When you live in a nicer place, items like appliances made with stainless steel are expected, not a bonus. Also, if you live in a more standard area, over-upgrading your home might not help your home rent. Avoid overpricing in an area where the rental rates are low.
Using Max Rent Strategies
This approach is geared towards bringing you the best tenants and optimizing your profitability. We recommend that your home be priced only below market rent (around 5 percent). We do so because we find this to attract the highest quality tenant and rent the fastest out of your home.
Many landlords are set at the highest asking price because they want to net their property’s most profits. However, choosing too high a price will cause your home to sit on the market for long. Vacancies are where owners will lose a lot of money if they don’t have rental income, but also have to keep the house in good shape.
Hire A Property Management Company To Set The Perfect Price
To order to set a rental price for your house, a good property manager should perform a comprehensive market analysis to ensure that you strike the ideal balance between optimizing monthly income and maintaining a low vacancy.
When you are using a property management company to manage your house, you can gain access to extra features that help you secure your house.
If you are in Florida and seeking to set the best rental price, get in touch with Kanga Property Management to handle and rent out your property.