One of the most important decisions that landlords make regarding their rental property is how much rent to charge. If you price your property too high, you may find that the residents you’re hoping to attract decide to look elsewhere. If you charge too little, you’ll miss out on what you could be earning, and you’ll have a hard time bringing that rent up to what the market will allow.
The goal is to strike a balance between ensuring your property is profitable while also making sure renters feel that they’re getting value when they sign a lease and move into your home. The right rental price attracts the right residents. It limits vacancy and it sets you up for a successful investment experience.
Here’s how to decide how much rent to ask for your Phenix City property.
Research the Market
The first step in determining rental charges for your property is to research the current rental market. Check the local listings, but for the most accurate data, consult with a Phenix City property management company. We are pricing property, signing lease agreements, and working with tenants every day. We watch the market carefully and we understand how high we can go and how competitive we must remain.
Gather comparable rental home and apartment values. Compare your property to others just like it in the same neighborhood. Location is especially important; you want to make sure you’re gathering data that’s unique to where your rental is located.
Location, Location, Location: The Real Estate Rule
If your rental property is in a desirable neighborhood close to schools and shopping and restaurants, you’ll be able to ask a little more when you’re setting your rent. An appealing location will allow you to attract better tenants and higher monthly rents.
When your property is more remote or perhaps located on a busy street where parking is impossible and traffic is heavy, you may have to bring that price down a little bit.
Consider Property Condition: What Do You Offer?
The condition of your rental property is another significant determinant when deciding how much you can ask in rent. If the property is in excellent condition and has many desirable features, such as new appliances, updated fixtures, and modern amenities, you set the rental price a little higher than market rates. If your appliances are old and your paint is deteriorating and you have no interest in making improvements, you’ll have to be more competitive with your price. Tenants are only willing to pay top dollar for homes that are attractive and modern.
Determining the right amount of rent for your property requires planning, research, and patience. Make sure to research your market, consider the quality, condition, and location of your property, and talk to local Phenix City property managers. Pricing your rental property correctly will attract the right kind of tenants, retain them over time, and maximize your profit potential. It’s worth the effort to set the right rental value.
Need help with pricing? We’re here to make it easier for you. Please contact our team at Bickerstaff Parham Property Management.