4 Ways to Set Your Rent
When renting their property out, many property owners struggle to determine its rental value. Rental prices can fluctuate every year depending on the location, the number, and the type of properties entering the rental market and market trends. When figuring out how much you should charge for rent, be mindful of your end goal to get the best return on your investment.
Follow these tips when setting your rental property’s rental price.
Use the Property’s Rental Value for Reference
If you do not know the current market value of your rental property, have an appraiser appraise your property. The amount of rent you charge should fall between 0.8 percent and 1.1 percent of your rental property’s value. Any higher and you may struggle to find a tenant.
Research Similar Properties in Your Market
When setting the rental price, it is important to compare your property with other similar properties on the rental market. Put yourself in the shoes of renters to better understand their concerns and expectations.
Some amenities that renters look for when renting a house are high-speed internet, reserved parking, and in-unit washer and dryer. Other factors that renters consider when choosing a rental are its location (proximity to grocery stores, public transportation, restaurants, schools, and hospitals) and whether it is pet friendly.
How does your property stack up against similar properties in your neighborhood? Check out online listings and find out how much rent other landlords in your area are charging. If your property is conveniently located and has more to offer than other similar properties, you may be able to charge a higher rent.
Use a Rent Estimate Tool
The rental value of your property should not be too high or too low. The best rent estimate tool will help you determine the right rental value of your property. When making recommendations, these tools take into consideration a number of factors including the location of rental properties and their value. Look for a feature rich rent estimate tool.
Leave the Task to a Property Manager
If you find the process of determining the right rental price overwhelming, hire a property management company in Cornelius. Not only will your property manager help you determine the right rental value of your property, they will also manage it.
Some services offered by property management companies include marketing the property, tenant screening and selection, and rent collection. A property manager is also responsible for ensuring that the property is in habitable condition. Your property manager will help you legally evict tenants and offer consulting services in the event of a legal dispute.
Castle Gate Real Estate Group is committed to helping prospective renters find the right rentals and landlords find the right tenants. We help buyers, sellers, landlords, and renters make informed decisions. To learn more, call 704-533-9387.