Pricing your rental correctly can be challenging. It can be tempting to charge a high premium for your unit compared to other similar units in the area, however, setting the rent price too high could lead to long-term property vacancy. Additionally, setting the rent too low will hurt your bottom line.
Here’s our guide on how to price your rental correctly.
Look at your local market
Before pricing your rental, it’s important to have a thorough look into what other landlords locally are charging.
The average price can vary greatly, depending on states and cities. As an example, rental properties are likely to be at a premium in places like L.A and New York City, whereas smaller towns with less economic growth and higher paying job opportunities, maybe less desirable to prospective tenants which pushes down the price.
Consider the seasons, they matter
In addition to looking at local competitors, considering the seasons is also a very important factor. Seasons are important as they tend to reflect demand for rentals in your designated area. As an example, if you’re based in a neighborhood that is mostly made up of homes for sale, then this can give you more room to upcharge your rent due to limited options for tenants. However, if your property is heavily surrounded by rental properties, you’ll need to set a more competitive rent price to avoid being overlooked by good tenants.
Consider your property amenities
Make sure you showcase your most favorable amenities within your rental listing and factor them into pricing your rental.
For example, if you find a comparable property that’s similar in size to yours but it lacks an important feature or amenity, such as a parking space, then you may be able to justify a higher price.
Are you constantly burning out because of stress and running your rental business? Read our previous blog post: Keeping work-life balance as a landlord
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