The process of renting your home is full of decisions to be made- among them establishing a fair market value for your home. If you’re facing that decisions, AHRN.com has 4 tips for establishing fair market value for your rental property!
When you are establishing what rental price to ask, the aim is to get as close to market value as possible without letting the house sit vacant. If the tenant is only paying your mortgage, you will experience a loss each time the home needs a repair. This cost should be built into the price you establish. Not sure how to establish it’s market value? Here are four tips to get you started.
1. Review AHRN.com to see how many houses in your neighborhood are available
It is the basic issue of supply and demand. If there are a lot of empty rentals with comparable stats to your property, the price your property can command will be lower. In locations where the demand for rental properties is high (often the situation around military installations) and properties are rented quickly, a higher rental value can be asked.
2. Identify the rental price range of comparable homes
There are many factors when assessing comparable homes. The basics will include:
- Bedrooms – 3 bedrooms are generally less than a 4 bedroom
- Location – Location can be everything!
- Schools – better schools receive higher rents
- Condition – this deters renters. Homes in less than ideal condition will require more competitive pricing
- Pool – In some areas, this garners more rent and other areas it does not, considering weather and costs of upkeep
3. Know your urgency level
When determining your best pricing, sometimes it’s a matter of how long you can afford to wait. If you have come down on short notice orders and need to rent your property quickly, choosing to ask a highly competitive rent for your property increases the chances of it renting quickly. If time is not as much of an issue, you can ask for more.
I find that with careful marketing, pricing, and a prompt response to inquiries, the right tenant finds my rental property!
We want to know:
What’s your go-to method for assigning rental value to your property?
Meet Your Contributor:
Elizabeth is a military spouse with a MBA and background in finance/accounting. She gained professional experience in Virginia by working for family run commercial/multi-family real estate company learning from the ground up. A transfer to Hanford, CA with a lack-luster job market has created the perfect opportunity to expand her personal and extended family portfolio. She currently self-manages 7 rentals all over the United States and provides consulting services to fellow military members.