There are factors one should consider before putting up property for rent. These factors help in the determination of pricing. Furthermore, one is also able to predict the market value as well as the time it will take to get a tenant.
Competing rent prices in the area
If you can look at very similar units in the same area, and get a feel for the spread of prices that other landlords charge. You can also talk to other landlords or renters in the area, to determine what’s fair and what’s competitive.
Habitability
How attractive is your property to potential tenants? Does it offer a better view than most other units? Does it have more space? Has it recently been renovated, compared to other buildings in the area?
Timing
The housing market shifts almost constantly, and you need to know where the economy currently stands. In some economic climates, it’s better for dwellers to rent, while in others, it’s better to buy. You’ll need to adjust your pricing to compensate for either of these changes. You’ll also need to pay attention to fluctuations in housing prices and demand for your given neighborhood, and seasonal changes.
Also read: 6 Ways to Prepare Your Commercial Property for Top Dollar Sale
Amenities and utilities
In some multi-family homes, the landlord is responsible for paying certain utility bills, factoring utility costs into the price of rent. If this is the case, you’ll need to charge your tenants more. You’ll also need to consider things like onsite laundry machines, or parking options, to price your unit appropriately.
Vacancy tolerance
Vacancies can largely limit profits. However, some landlords are more tolerant than others. For example, if you’ve afforded a big down payment and your monthly expenses aren’t a burden, you can survive a few months without a tenant. On the other hand, it may be better to charge a bit more for rent, waiting for the right opportunity to cash in.
