Once you’ve decided to rent out your home, the next thing to decide is how much rent to charge. This can seem like a daunting task. Don’t be afraid to explore your area and even experiment with rates early on.
To make sure you get started on the right track, begin by looking at what your property has to offer. Then, look around at other properties in your area. Finally, put it out there and see if people respond.
What Makes Your Home Stand Out?
Objectively look at your home. Are there upgrades or renovations that make it particularly desirable? Pay special attention to these areas:
- Flooring – is it primarily wood, laminate, vinyl or carpet?
- Walls – are they freshly painted?
- Appliances – are the refrigerator, washer, and dryer included?
- Security – is there a deadbolt, alarm system, or motion-activated outdoor lighting?
These are all areas that affect how much rent you can reasonably charge for your home.
What Is Your Competition Charging?
Now that you have a good idea of your home’s strengths and weaknesses, look at what others are charging in your area. To get a more accurate estimate, only look at properties within the same vicinity and school district as yours.
Check your local newspapers and rental websites. As you find homes with many of the same amenities and in similar conditions, keep track of what they run. You might also calculate the cost per square foot. This will help you compare homes that are similar in condition and amenities but vary in size.
How Much Will Renters Really Pay?
Once you know what similar homes cost to rent, come up with your target cost. Don’t forget to factor in any utilities and landscaping fees if you plan to include those in the monthly fee.
After all that consideration and calculating, why not place an ad and see if potential renters respond? If few people are interested, you may need to review and reduce your rent amount. If too many people come running, you may have underestimated the value of your property.
Do you have specific questions regarding the value of your rental property? We’re ready to help you make the most of your investment. For more information our property management services, call Keyrenter Property Management today at (844) KEY-RENT!