Today I want to talk to you about how you should set a price for your rental property. It’s an easy thing for us at Real Estate Eight Three One to do because we do it every day, so we have a good pulse on the rental market. When we are advising owners what to charge for rent, we start by comparing the property to others that are similar and in the same area with identical amenities. We take a look at what those properties have rented for in the past, which helps us to recommend a good price point.
One of the most important things to remember when setting a price for your rental is not to price it too high. When you set a price that’s too high, it will create some additional downtime for your property, and that vacancy will create lost revenue that you will never really be able to recover. So, you want to be realistic about how much rent you can reasonably charge when setting your price. Take a look at what other properties in your neighborhood are renting for, and that will give you a pretty good indication of what you are going to get for your home.
Our goal as professional property managers is to attract and retain the best possible tenants. Setting a price that’s too high will also come with an additional risk; getting someone who is a little more desperate to rent your house. If your home is priced too high for well qualified tenants, you will likely get applicants who have been turned down in other places and they just need to find housing. They will be willing to pay more because they know they cannot find anywhere else to take them, and they know you will not be able to rent your home to a better tenant because of the price attached to it. You’ll be better off with a more reasonable price and a highly qualified tenant in your home.
Hopefully, today’s blog has provided you with some general direction on how to price your home on the rental market. If you have any questions at all about how much rent to charge for your property, please do not hesitate to contact us at Real Estate Eight Three One, and we would be more than happy to help you.