How to Set the Right Rent
Perhaps the most difficult part of renting property is setting the proper rent. Property management companies are ready to take the burden off your shoulders, but it’ll cost you. With the right information you can do it yourself.
The best place to start is to check the Sunday paper or online listings for properties similar to yours, for finding the range of prices in your area.
In trendy or high-traffic areas, there is a constant demand for rentals. However, even if your property is in such an area, common sense dictates property with repair or maintenance issues won’t demand the same price as a well-maintained property.
Workout facilities, pools, tennis courts, etc. all affect a renter’s decision, as will basic amenities like dishwashers, laundry facilities, fireplaces, covered parking, and cable TV.
Your local apartment owners association can help you determine local economic trends or other factors affecting rental rates. Many also have publications with advice on setting price as well as other management issues.
Testing and tracking is a good way to set rent prices. Err on the high side — it’s easier to lower prices than to raise them. And offer incentives when the market is soft — things like a free month of cable TV can tip the scales in your favor.
Being a landlord can be an amazing investment if you play it right! Be careful and do your research before making any decisions to ensure your property pays for itself and then some!