You’ve purchased your rental property and are now ready to enjoy the nice cash flow that comes along with the title of “landlord”. But before you can list your property, you must decide how much to rent it out for. You don’t want to set the price too low and miss out on additional income, but you also don’t want to overprice yourself out of the market. So, how do you determine the perfect rental price? Let’s take a look at some of the things to consider when setting your rent price.
What’s the Market Rate in Your Area?
To give you a good ballpark range of rental prices, check out your competition. What are other landlords and property management companies charging for rent in the area? Examine these properties and compare them to yours. You can do this through research online, in realtor magazines or flyers, or even by visiting the properties. For the best comparisons, try to find properties within close proximity of yours with similar square footage and amenities.
You can also talk to a realtor for advice. Perhaps the one who helped you purchase the rental property can pull some comparisons for you. Use this information as a starting point to help you determine the right price for your property. (more…)