Setting the proper rent amount for your rental is critical to filling your vacancy quickly. There are a number of factors to consider when setting your rent. Here are some tips for setting a proper rent amount.
- Review AHRN.com and other listing sites to see how many rentals are available in your neighborhood
A quick review of the available rentals will help to determine the supply of rentals currently on the market. If there are a lot of empty rentals, it may be a sign of a weak rental market. Likewise, if there are few available rentals, this is a sign of a strong rental market. Seasonality also has a significant impact on the number of available rentals, with the spring and summer months being most active.
- Identify the rent range for properties similar to yours
There are many factors when assessing comparable homes. Select listings that most closely match your property features, including:
- Number of Bedrooms
- Number of Bathrooms
- Location – Location can be everything!
- Utilities included in rent
- Schools – better schools receive higher rents
- Condition – Newly remodeled rentals can command higher rents
Compile a list of properties that most closely match your rental and sort by rent from lowest to highest. Review the list and position your rental in this range based on how your property compares. Ask a friend to do the same to see if their opinion differs from yours.
- Review your financial situation
Be sure to know your financial situation regarding the property. How much is the property costing you each month? Mortgage, taxes, maintenance, etc. are all monthly costs that must be paid whether you have a tenant or not. This review will help to determine how long you can afford to wait for a tenant.
Conducting up-front research on your rental market can help ensure that your rent is set appropriately from the start and give you the best chance for finding tenants quickly!
Leave a Reply