How to Determine the Rent to Charge on Your Property
When you own a rental property, there are a lot of questions that you are going to need to figure out. From how to handle your landscaping to choosing your tenants, the issues are endless when it comes to being a landlord. As a landlord one of the biggest concerns you may have is how much to charge for rent. You do not want to overcharge because you could have a hard time finding tenants to rent out the property. If you undercharge, you are essentially losing money every month. It can be very difficult knowing exactly how much to charge for rent. Here are some great ways to determine what the right rent is for your property.
Check Out Other Properties
One of the best ways to determine how much rent to charge for your property is by checking out other properties in the area. You have to be mindful of what each property entails when you compare the rent on them. While it may look comparable, the other property could have more or less features that you aren’t aware of. In order to avoid this, you need to check out multiple properties to get a good idea of what the typical rent is in the area. This will help you remain competitive when charging rent to your tenants.
Take Inventory
Another way to help you decide how much rent to charge is to get an idea of what you are offering your tenants. Do you have a huge deck that allows them to socialize? Do you have energy efficient appliances allowing them to save money on their utilities? If you provide features that will make their life better or save them money, then you are able to charge more for rent. You still want to be careful you do not charge too much or else you could have a hard time renting your place out.
Assess the Value
Before renting out your property to someone you need to know how much it is worth. This is easily done by hiring a real estate appraiser. You could be surprised at the value of the property. Knowing how much the home is worth allows you to decide what you can get for rent. Typically, the more upgrades you make on the home, the higher you can charge for rent.
Count Your Costs
When renting out a property, you want to make sure you are getting enough to at least cover your costs. You should take into account the mortgage on your property and any other costs associated with it. If you are in a competitive area, it is possible to get more than just your costs. In some areas, you can charge hundreds more than what you owe on the home.
By using these methods, you can better decide how much rent to charge. If all else fails, you can contact a property management company to help you determine the rent. They are experts in handling rental properties.
