One question we frequently get asked is about how to set the appropriate rental price for your property. It’s important to be consistent with the process you use to set a price, and there are a few simple factors to consider when you’re pricing your rental home.
Tenant Placement Goals
First, you need to consider your goals as a property owner, particularly how quickly you want to find high quality tenants for your rental. If the property is sitting vacant and you’re tight on cash, we know you need to fill that vacancy immediately. Under those conditions, you’ll want to be as competitive as possible with your price so you attract the attention of good tenants right away. However, if you have tenants in place for at least the next few months and you really have a desired rental rate in mind, we know we can test out those higher prices and see if we can find the right renter before we get aggressive with pricing.
Consider Your Competition
The competition for homes like yours will also play a part in your pricing strategy. If there are other homes just like yours in the neighborhood, you need to understand their price points. These properties will be similar in size and quality, and you’ll need to adjust your own price accordingly. When a home similar to yours is around the corner and has been on the market for a long period, we should go slightly below their rent rate in order to get good tenants. If there are two properties like yours without the renovated kitchen that your home provides, we might be able to price it a little higher because of the added value.