Dealing with your property can be overwhelming.
One thing you aren’t sure how to figure out is the rent. Setting the right rental price could be the difference between getting your place rented or not.
The following are a few tips to help you get your tenants.
Look Around
The first thing to do is look around before you set your price.
It’s strange to look towards your competition, but that will help you set a price folks in the area are expecting.
If the rent fee is too low, you’ll lose revenue, but too high will make people think you’re trying to take advantage. When you do this, only compare your property to similar ones. Stick to the properties in your section of town.
Be sure the property is similar in size, number of bedrooms, and anything else you can think of.
A single-family home can be priced higher than a place in a multi-unit property.
If your place happens to be new, then folks are willing to pay a little more than an old place.
A Professional’s Opinion
An easy way to get a good rental price is to get the help of a local pro. Make sure they are local to you. If you rent out in the Fort Myers, Fla. area, look for professional property management here.
You might want to talk to a few and get them to come and tour your property.
These folks don’t only know the rental market in your region, but they know what renters are looking for. An experienced property manager should be able to price your place, and they might want to help you rent it out, too.
Think of Amenities
As a general rule, it’s never a good idea to set a standard price for all your properties.
You want to set your rent according to the amenities each rental offers. For example, if one of your apartments or houses has a nice view, then that should be priced higher.
A nice view could be anything, from the beach to a wooded area. If the unit has updated appliances, accent walls, or beautiful hardwood floors, then price these higher.
The square footage should also play a factor, and so will the floor level. Penthouse and ground floor apartments are usually more than those in the middle.
Keep in mind that this only works for buildings with elevators because people don’t like to walk too many stairs up.
Things like large walk-in closets and balconies make units way more desirable so that you can ask for more.
What Should Rent Cover?
A good way to figure out what you need to charge is to make sure the rent covers the following:
- The PITI mortgage payment
- Maintenance and repairs
- Vacancy costs
You should be able to pocket between zero to six percent of the rent though this is up to you and how much you’d like to profit from each rental.
Hopefully, some of these points help you price your unit correctly, but there’s much more to consider, like if your unit is in demand. If you aren’t getting viewings, you might need to lower your property’s rent. The good thing is that the demand for rental properties has been healthy for a while.
