Who sets the renting price?

Question

If I buy a property and I want it up for rent, then who sets the renting price for the property?

Ross Greene · Answer

Your market sets the price :)

Sterling White · Answer

Agreed with @Ross Greene. The market will tell you what your rental should be priced at @Joseph Fernandez. Pull comparables in the local area. If you price too high or too low the market will let you know.

You're the one that sets the price.

Jedd Braunwarth · Answer

@Joseph Fernandez, you do! You can choose to list the property for anything you want. Of course, just like an agent listing a house for sale, you have to look at comparables in the area. For example, what are other properties near yours renting for, is yours better or worse condition, do you have more/less amenities, are utilities included or not, etc. Start by searching other properties for rent on Craigslist, zillow or try rentometer.com. These should help you get an idea of what things rent for and where to price you rental.

Finally, if you set a price and list your property and you get a bunch of applications right away that may mean you set it right or that you set it too low and it was a bargain. On the other hand if you get a bunch of showings and no applicants then you have to figure out why you are losing those renters to other properties. Most of the time the price does not align with the competition.

David Faulkner · Answer

Also agree with Ross Greene but would state it differently: you set the price, but if the market does not agree, you lose money. Too high and it stays vacant, too low an you aren't collecting all the income you could, just right and you maximize profit. Kinda like being married ... you can decide on your own, but if the wife does not agree you lose, so it is always best to either consult with her first or let her make the decision :)

Joseph Fernandez · Answer

@Jedd Braunwarth THANKS! Haha, setting the rent just low enough to have positive cash flow and giving the tenants a bargain doesn't sound too bad. I would think you are better are doing it this way. Just to guarantee your cash flow per month.

Joseph Fernandez · Answer

@Paul Newby Thanks Paul!

Who sets the renting price?

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