Determining a rent price:
Property managers and landlords alike face the same questions: How much should I charge my tenants for rent?! Coming up with a fair rental price entails research and an honest look at what your property does and doesn’t offer to future residents. Finding the right rental price should not give you a panic attack, its easy, so don’t stress. Lets take a look…
There are tons of websites that can give you rental price amounts but they all seem to differ. You have Zillow, Rent-o-meter, Trulia and many more. Look at a median rental value for your property and pick that. Remember supply and demand. If you aren’t getting any leads the first few days of posting your vacancy, its probably priced to high.
The most effective way I’ve found to find a fair rental price is by looking at recently leased units on the MLS. You compare apple to apples. You want to make sure your search is within .50 miles and only goes back 6 months. Remember compare like properties to other like properties! Also, looking on Craigslist is another great way to find a good rental price!
If you don’t have the MLS, get on Craigslist and find very similar properties to compare your property to. Look to see if the interior is around the same as your property. If everything looks to be fairly identical, it would be safe to use that property as a comparable. Select 4 – 5 comparables and take the median value of the 5 and use that as your rental price. If you aren’t getting many leads, drop it $50 each week. Again, supply and demand, if its priced right, tenants will rent!
A word of advice:
If you are leasing property for a client, SET EXPECTATIONS UP FRONT that finding a tenant is about supply and demand. Don’t over promise and under deliver!
Here is a cool tool I use for determining a rental price: