Finding someone to rent your property is the same as finding a customer for any other service; the price has to be right. Here are top ways to help you set a price that will get your rental property off the market.

1. Compare with Other Property Rental Rates

Do a comparative study to other rentals similar to yours. This is important because, if a tenant can get the same house at a lower price, they will not consider getting a property for more. The property rental rate you gave has to be within an acceptable range. Here are some of the factors to keep in mind when doing a comparative survey:

Neighborhood

Look at listings in the same town as your property, right down to the same section or street as yours. This is important because one part of your town can be deemed as less desirable than the other. This has to reflect in the rent amount. Your street or section gives you a better range to work with.

Are there social amenities close by like schools, malls, hospitals and so on? These also tend to make an area more desirable, and you can get better rental income from houses near social amenities and facilities.

Number of bedrooms and baths

Of the properties listed, check for those with a similar number of baths and bedrooms as yours and what they are going for.

Multifamily vs. single family homes

Compare property rental pricing of your specific home type to other similar units. If it’s a single-family home, compare it to other single family homes. If its multifamily units compare to similar multifamily units, single-family homes attract higher rents than multifamily homes.

New or old construction

New rentals fetch higher rents than older ones. Keep this in mind while making your comparisons to arrive at a fair market price that will get your rentals occupied in no time.

 How to Find Comparable Properties

 Drive around

You can drive around your neighborhood and check out vacant properties, view them and get pricing information from the landlord. The goal is to check for all the above features in comparison to your property.

 Online Ads

There are multiple house listing sites that will give an overview of house price, features, and location. Here, you can track which properties move quickly, which ones lower their prices and which ones stay in the market for too long.

 Enlist the help of a realtor or a property management services company.

Even if you would prefer not to list your property with a realtor, having them view the property can give you insights on a suitable property rental rates for your type of house.

2. Consider the Unique House Features

Set your prices according to how different or according to the unique features of each unit. This means:

  • Do not place the same price for all one/two or three bedroomed houses in your property, unless their design, view, and features are identical.
  • Similarly, do not have a fixed price difference for extra bedrooms.

Here is how to go about it instead:

  • Charge higher rents for apartments with a garden, swimming pool or other unique views than those facing the parking lot or the back of another building.
  • Charge more for units with newer amenities and fittings.
  • Charge more for a unit with a slightly larger bedroom size, and less for one of a smaller space.
  • Apartments with a railroad setting, where the rooms are lined up, fetch a lower rent than other layouts. For this layout, you will have to charge less than landlords with similar sized houses, but different layouts, are charging.
  • People prefer top floors. Therefore, charge more for higher floors. However, if access is via a stairwell, then the reverse is true; higher rent for lower level floors and lower rent for higher floors.
  • Extra closet space, a larger balcony, an extra or large window can get you a higher rent than the units without the extra trimmings.

3. Interest Generated from Prospective Tenants

Once you put the information on your rental out there, the information you get back can inform you of the favorability of your price. If no one is calling to get more information or request a viewing, the price might be too high. If you are flooded with calls and offers, it could be that the price is too low.

Similarly, take note of high demand seasons and price accordingly. In the summer, for example, people tend to move and get settled before the new school year starts. You can get a higher rent at this time.

In a bad economy, the same is true as well. Families may be unable to make their payments and opt for smaller, more affordable house units, again driving the demand up.

Ways to increase the rental rate of your property

  • If you are an absentee landlord, or otherwise busy, engaging a property management company for professional property management can ensure you have someone taking care of the property in your absence. A well cared for property will attract reasonable rents over longer periods of time.
  • If the land your property is on allows for it, carve out some greenspaces. These can drive up your rental rates, as well as attract families with younger children.
  • Consider added extras. Think of it this way; if your street has the same housing type, size, and layout, what can make your unit stand out. Simple features like installing a security system or high-end appliances can attract long-term tenants and drive up demand when a unit falls vacant.

If you are looking for more information and resources on how to price your rentals, we can help. Our software allows us to run a comparative study of listings similar to yours so that you can price your property reasonably and get it occupied in no time. Contact us today to book an appointment.