How do you know how to price your new rental property?
Hey @Van Adams, welcome to the BP Forum! You need to check out what other, similar units are renting for nearby and adjust up or down based on how your unit compares.
How do you know how to price your new rental property?
Hey @Van Adams, welcome to the BP Forum! You need to check out what other, similar units are renting for nearby and adjust up or down based on how your unit compares.
I would look at a variety of sources (I market on CL, FB, Zillow, Apts.com) and compare the existing inventory to yours and compare amenities, such as off-street parking, W/D hookups, square footage, neighborhood, updates, etc. Be honest with yourself about how yours compares to these. You will see a continuum of quality/desirability which will coincide with prices. See where yours falls in that continuum, and you've got a rough idea on price.
You can also use rentometer.com for a gauge as well. The more data sources you look at, the more confident you'll be in your pricing.
Don’t forget, if you’re 4% cheaper than the competition and it rents 15 days faster, you’re way ahead. (More rent collected and less utilities you have to pay. All while reducing the danger of damage/squatters in an unoccupied property.)
If you’re 4% higher and it takes an extra 15 days, you actually lost money.
To price your rental right, check recently rented comps in your area with similar size, condition, and amenities. Make sure rent covers all expenses, mortgage, taxes, insurance, and upkeep with some margin. If interest is low, you may be priced too high.
I'm just piggy backing off what other people said on this post already but renting my duplex I used Zillow, Apts.com, Craigslist, For Rent Signs around the area (Call like a prospective tenant) to get what average rent for my unit goes for. I usually shoot for being just a tad bit under market rent to get more interest & then just Vet all the applicants
Hi Van! A good starting point is to check similar rentals nearby, factor in your costs (mortgage, taxes, insurance, etc.), and make sure you leave room for profit. You can start slightly above market and adjust based on demand. Amenities and upgrades can let you price a bit higher, too.