Guide To Setting Rental Rates

Guide To Setting Rental Rates



Guide to​ Setting Rental Rates
Setting the right rent can be one of​ the most difficult areas for many people who are investing in​ rental property .​
If your property rents out in​ no time, it​ could be an​ indication that you are not charging enough rent .​
On the other hand, if​ your property seems to​ take a​ long time to​ rent out, it​ could be a​ clear indication that your rent is​ too high .​
So, how do you go about setting a​ rental rate that is​ in​ line with the current market?
One of​ the best places to​ start is​ the newspaper .​
It is​ imperative that you do some local research to​ find out what kinds of​ prices are driving the local market .​
Location is​ the most important factor in​ determining rental rates .​
For example, a​ three bedroom, one bath home in​ one part of​ town may rent for a​ $750 a​ month while another property on the opposite side of​ town may only be able to​ draw $500 per month .​
Most prospective tenants look for convenience when searching for a​ rental property .​
They are either looking for a​ location that is​ near their work or​ close to​ their children’s schools .​
Neighborhoods that are considered to​ be trendy or​ hip can also be a​ driving factor, as​ many people like the idea of​ living in​ certain neighborhoods .​
Of course, the budget of​ the renter will also play a​ role in​ determining how much they are willing to​ pay and can pay in​ rent .​
Due to​ the fact that most renters have needs that must be filled, especially in​ terms of​ space, it​ is​ quite common for square footage to​ also play a​ role in​ determining rental rates .​
This means that larger homes and units will typically be able to​ rent for rates that are higher than smaller homes and units .​
When setting rental rates; however, it​ is​ also important to​ keep in​ mind that there is​ a​ certain point when rental rates can reach a​ cap .​
When interest rates are low, if​ rental rates rise too high, renters will quickly make the connection that it​ just does not make sense to​ rent any longer when it​ could be less expensive to​ buy a​ home .​
Another way to​ make sure that you stay updated on rental rates in​ your local area is​ to​ join a​ local association for landlords .​
This is​ a​ great way to​ make sure that you keep your finger on the pulse of​ the local rental market .​
Emerging trends in​ the area will affect not only you but also other landlords as​ well .​
For example, if​ your particular area is​ in​ an​ economic slump or​ even an​ economic boom then this could have an​ effect on local rental rates .​
Make sure you keep track of​ whether there have been job losses or​ the creation of​ new jobs in​ your local area .​
It is​ also important to​ keep in​ mind that basic amenities can also play a​ role in​ determining how much rent you can charge for your unit or​ apartment .​
Some of​ the basics expected by most prospective tenants include off-street parking, washer and dryer hookups, dishwashers, etc .​
If these basic amenities are not available, you may find that you need to​ either offer something else that would attract prospective tenants or​ lower your rental rate.




You Might Also Like:




No comments:

Powered by Blogger.