Are you planning on listing your home for rent for the first time? If so, one of the most important things to do is to effectively price that property for rent.
Setting the correct rent will ensure that you’re going to be able to cover your monthly mortgage, costs, and other expenses associated with owning a rental property.
In this article, we will offer you several effective tips that you can use for pricing your rental property correctly.
During the process of getting your home ready for rent, one of the first things that you must do is an analysis of comparable rental properties in the area.
Keep in mind that even though you may find comparable properties, there are a variety of factors that can affect what a property can rent for including:
· Neighborhood – Is the property in a good school district? Close to shops, stores, and fun things to do nearby?
· Square Footage – Does the rental have more square footage and living space than similar properties in the area?
· Amenities – Most importantly, does the rental have amenities that are in demand like a garden tub, swimming pool, jacuzzi, shop, or a two-car garage?
One deciding factor when it comes to what properties rent for is the upgrades that you’ve made to your property over the years.
If you recently upgrade your kitchen or added smart appliances to your home, these are in-demand renovations that tenants often look for because they know those improvements will save them money off their monthly energy costs.
Rental properties have been heavily in demand for the last five years, and that demand doesn’t show any sign of slowing down as renting is still more affordable than buying, for most people.
Yes, demand influences what owners charge for their properties but that doesn’t mean that you should overprice your rental because overpricing can work against you and ultimately make finding a good tenant difficult.
For best results with pricing your property for rent, it’s a good idea to price it close to what other comparable properties are renting for, or use the 2% rule and price it at 1-2% of your property’s value.
Contact GoldenWest Management
At GoldenWest Management, our team has decades of combined experience managing single-family and multifamily rental properties in San Diego, Phoenix, and Las Vegas.
To learn about the services we can offer you, contact us today by clicking here, or calling (866) 545-5303.
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