Whether you’re a first-time landlord or have been a landlord for a while, pricing a property can be a challenge. The price can determine the success or failure of a property when it comes to renting. If you price your property too low you won’t make a profit. The same can happen if you price your property too highly; renters will avoid a price tag outside of their comfort zone. This means that a high price can leave you with a vacant rental for weeks—if not months.
The Price is Right
Finding the right price doesn’t have to be an arduous process; there are several ways you can discover the perfect price for your property. One of the best ways to see how your property lines up with others is to scout how much similar rentals in your area charge. Doing your research early on is important to guarantee good tenants, and if you don’t want to put in the legwork, there are plenty of online tools that will help you find an estimate.
This website is simple and intuitive. You put in the address, the price, and how many beds there are in the rental unit and it will tell you if your price is reasonable for the area your property is in. If your price is in the red or the green of the meter, you might want to reevaluate how much you are asking from renters.
Zillow has a great pricing tool to help find out what similar properties in your area are charging. The easy-to-use tool will give you a price range to place your property within. From there, you can see how your property measures up to others when it comes to bedrooms, bathrooms, and square feet.
While the listing site might not have the same comparative properties as the other pricing tools, it’s always a good idea to put in some research before setting a listing. The only thing you should watch out for is fake ads. These can skew the results by over- or underpricing your property.
There are several factors that renters are looking at that will let you bump the price up. If you have any of these, consider them into the rent price, but don’t be exorbitant. These are typically factors that will save a tenant time or money in comparison to other rental properties, so you still want them to feel like they are getting a deal.
One of the biggest selling points for a property is how walkable it is to places the tenant needs to go. This could be their work or school, shopping, entertainment, or restaurants. Walkability can even be a factor if the property is close to a bus or metro stop. Do not underestimate how desirable walkability is to renters. This is also something you would want to advertise.
Renters with pets typically have a harder time finding a place to stay. Landlords tend to be wary of animals because they can increase the level of wear and tear that is caused by each new tenant of a rental. However, if you do allow pets, owners are likely to stay longer and willing to pay a little bit more to have a home with their furry friends.
Appliances in general can help make a rental property worth more to a renter, but laundry is one of the largest factors. Renters are willing to pay more if there is a place in their home to do laundry so they don’t have to go out of their way to get their clothes cleaned.
Higher Rent Doesn’t Mean Higher Profit
Rather than finding a tenant who will pay the highest rent, find a tenant who will pay rent on time and be consistent. It can be easy to find a resident who may agree to a certain price and then skip out on paying rent when they find it too high after they’ve moved in. A good renter is often worth the rent you lose out on with a slightly lower price.