When you have a rental property, setting the right price can be the difference between having a vacant unit for months and having a waiting list of tenants. It’s important to find the sweet spot so you attract the type of tenants you want without losing money because of vacancy. So how do you find the right price?
Here are 5 factors to consider when setting your rental price:
Type of Property
This one is pretty obvious but a detached single family home will generally go for more than an attached unit. When you’re looking for price comparisons you need to be looking at the same type of property. If you aren’t pulling comps for the same type of unit then you’re likely to over or underprice your rental.
In the same neighborhood, a 500 square foot apartment isn’t going to go for the same price as a 750 square foot unit. Much like the unit type, you need to look for comparisons with close to the same square footage. This can often play into the number of bedrooms as well. Units with similar square footage often have the same number of bedrooms.
It’s common practice in the industry to offer a year lease for most properties. However, if you are offering a shorter lease, say 6 months, that can factor into where you set your rent. For shorter term rentals it’s reasonable to charge a higher rate because you are taking a chance on the tenants and risk more frequent rates of vacancy.
If you have a property in a neighborhood or complex that offers amenities for residents then you need to factor access to those into your price. A property with no pool or workout center should go for less than a similar property with those access to those amenities.
This is a big one. When you have a property that’s in the heart of an urban area or even just a neighborhood shopping district it will likely have a high walkability score. This factors into your rent price and should bring the price up. Being able to walk to grab dinner, the corner store or grab a drink with friends is something desirable to many renters.
At the end of the day, setting the right rent price for your property requires a decent amount of research and understanding of the area. If you are feeling overwhelmed or are tired of playing the rent game, get in touch with us today to learn how we can help.