TIPS FOR SETTING YOUR RENT AMOUNT
In a perfect world, your rent amount would cover all of your expenses for the property plus allow you to claim anywhere from 1-6% of the rent as profit.
Higher
rental prices convey status, but prices that are too high will drive renters
away. Similarly, if your rent is set too low, interest will wane due to the
assumption that the unit must be unfavorable. The key to successful
price-setting is finding that middle ground, ideal for the current rental
climate.
Here are some tips to help calculate an appropriate rent
for your property:
1.)
Know your monthly
expenses for the property. This should include any mortgages, loans, the average
costs of maintenance or repairs, advertising fees, vacancy costs, screening or
legal fees.
2.)
Look
in local newspapers and online advertising for properties that are similar to
your rental property, and within a close geographic area. If you track these
ads for several weeks, you will see patterns arise among the properties that
rented quickly and those which did not. You will also be able to note any
changes in asking prices. Identifying properties that rented within the shorter
time range or adjusted price point, will give you a good idea for what is a
reasonable asking price in the area.
3.)
View
available units in your area, compare features, and ask the landlord about the
level of interest they have seen with the current price.
4.)
Adjust
your price based on the amenities available. Convenient location, favorable
views, good parking, updates, square footage, floor level (upper level units
are, generally, more desirable), closet space, etc. may all be cause to increase
the price.
5.)
Remember
that you will not set the price for your property and then leave it unchanged, for
the duration. By watching the market in your area, you will be able to adjust
your pricing appropriately, and maintain high demand for tenancy.
A rent
amount that provides market supported profit for property owners, is not
evasive or difficult to obtain. By following the above tips and remaining open
and aware of changes in the local market, you should have great success.
Visit
our website: www.erentalservicesinc.com
for more information.
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