When you introduce your property into the market, you need to decide on a price for the rental. There are numerous factors you need to consider so as to set the right price for the property. When you set the right price, you can attract prospective tenants to the property and generate rental income.
Look at comparables
Whenever you decide what to charge for the rental, you need to look at the competition. Look at the neighborhood and properties that are similar in size to yours. Consider the rental for new construction vs old construction buildings. You can get this information through online ads, from a realtor or in person. Greg Bacheller from 719 Rent (https://719rent.com/) says that because the rental market varies, you need to do your research before setting a rate for the next tenant to move into your property. Looking at what similar homes are renting for will help you set a realistic price.
Adjust the price for amenities
The rental price cannot be the same for a property with one bedroom and for a property with three bedrooms. You need to charge rent on the basis of how desirable the unit is. Consider the view, any updates and the square footage of the property. Any apartment with a garden view will be more desirable than the one with a view of the parking lot. If your property has the latest appliances, you need to charge extra for the same. Similarly, a property with larger square footage will be more desirable than the one with small square footage. Even an extra closet, window or balcony will make the unit more desirable.
Consider your goals
Every property owner has different goals and regardless of the goals, the rent should be minimal enough to cover all the expenses of your property. It should cover your mortgage payment, the cost of repairs and maintenance and vacancy costs. The rent should put some money directly into your pocket and if it does not, you are doing no good by renting the property.
Market demand for the property
Setting the rental price for your property is a one-time event. However, you need to constantly look at the market and adjust the rental based on the demand of the property. If the economy is bad, the demand for your property will go up because people cannot afford to buy a home and they would choose to rent instead. When there is a greater demand for property, you can charge a higher rental and when there is a lower demand, you will have to lower the rental.
The easiest way to know if you have fixed the right rental is by considering prospective tenants. If there are tenants who are calling to see the property, the rental is appropriate and if the rent is set too high, prospective tenants might stay away and you might not have anyone asking to see the property.