The amount you charge your rental property will determine if you will get renters or have a property with no one renting. Before you settle on the rental price, you need to research or do a survey that will help you set the price right.
You may consider the average price in your neighborhood, the amenities in your property, location, and the level of investment you have put in your property. The following factors are important before you set your rental price.
Amenities in your property
Many rental properties in your neighborhood might be charging lesser but it might be because they lack important amenities and utilities. Your property might have better parking options and might be providing laundry services on site. You might be willing to pay a certain amount of utility bills and in this case, you will charge more.
If you are not certain on the best price to set for your property, contact Affordable Property Management for advice. The company has more than 30 years of experience providing full property management services to property owners.
If you own property in the entire city of Northern California, Affordable Property Management will help with full leasing services. You can still contact them if your property is in the other cities of California because they offer limited management in those areas.
Rentals in your neighborhood
Every neighborhood has its unique rent price range and every tenant seeking to rent in that area will not expect your price to exceed that range. Before you decide the amount to charge, walk into your neighborhood and establish the cost.
You may also search online to know the price range or visit a credible property management company for advice. You must find out charges for one bedroom, two bedrooms, full family house, bedsitters and so on before setting your price.
Your amount of investment
Someone who built their property three decades ago invested less compared to someone who built a property three years ago. The amount of investment might also differ from someone who bought a fully complete property with someone who built it from scratch. If your investment amount was too high and you set your rent price too low, you might never recover your investment in your entire life.
Location of your property
You might be in a neighborhood that charges low rent, but it happens that your property is located in a prime area. In such a case, you will not charge the same with someone in a less prime area.
Some locations are less secure and they attract lower rent prices compared to the more secure locations. Location is also determined by the class of people living there. If you are in a middle-class location, you will charge more compared to those in the lower middle class.
Size of your rooms
Consider a situation where you have two sets of rental properties. Both are three bedrooms but one has tiny rooms and the other has large rooms. The property with large rooms will attract more compared to the one with tiny rooms.
It also means you spent more money to build the property with larger rooms and it occupies more space on your land. Naturally, tenants will be more attracted to a spacious house than a tiny one.
The housing market trends
Home prices keep fluctuating and when demand for buying homes is high, more people tend to rent instead of buying. If demand for renting is higher, you can set a higher price but if you get into the market when demand for renting is low, you might be forced to lower your rental price.