When determining the rental price for a property, many factors must be considered. It is important to speak to an expert in the area, like a local property manager or real estate agent. Apart from an expert helping you with the price comparison for that area from the MLS (Multiple Listing Service), there are a few things that also play a role in determining the rental price of a property.
A desired location with access to amenities, like public transportation and in reasonable proximity to necessities, usually increases demand which in turn can create a higher rent price.
Size and Condition:
Larger properties with more rooms and a more updated model may warrant higher rent. An outdated property typically has more room for negotiation and tenants could request repairs be done before move-in, which would cost more for the owner.
If there is a higher demand for rental properties in the area, the price may go up.
Researching other rental prices for similar properties in similar areas can be helpful. However, noting the other factors like size and condition compared to the other properties can decrease the chance of overpricing the property.
When determining the rental price, the cost of maintenance and operating expenses should be factored in. Things like lawn or pool care, pets, and general wear and tear of the property would be a good starting point.
The current state of the rental market will impact rental prices.
Again, it is always important to consult a local expert or online sources, like Zillow and Redfin, when determining the rental price of a property. Learn more about property management and request a quote below.