The difference between success and failure in real estate rentals often is based on charging the right price for a property.
Charging too much might make the property unattractive to potential tenants and lead to nonpayment of rent. Charging too little, though, can eliminate the potential for profit and even put a property owner in a difficult financial position.
By following some basic steps, property owners can establish a good medium in pricing that keeps both the tenant and landlord satisfied.
1 Check comparable rental listings in your local newspaper and on brokers websites. See what other property owners are charging for homes/ apartments that match your properties in terms of size and amenities.
2 Obtain the addresses for similar rental properties, particularly those properties with the same approximate value as your properties. This information might be in an ad listing, or you might need to call the number on the ad. Use the information to identify how geographic area affects rent price.
3 Consider geographic factors such as proximity to shopping malls, golf courses, roads, malls and schools. Renters might pay a premium for properties when they are in attractive settings.
4 Network with others who own and rent property and discuss with them the rental market and how much properties are renting for given current economic conditions.
5 Set a base price for your rent based on the information gathered. Figure in slight increases if your property has features that are not common or in high demand. Features might include a swimming pool, a garage, lawn service, new appliances, furniture and common areas.
6 Lower your asking price if you receive few calls on advertised properties.