How to Market Rental with Utilities Included

[Michael Archard]

Hi BP,

I have a B+ class 2bed/2bath condo that I'm preparing to list for rent. The market rent without utilities is about $2,100 which I have verified with local agents and property managers. The condo is in a midrise building with the $525 HOA covering all utilities (unmetered), amenities (pool, gym, game room, etc), parking, snow removal, security, master insurance. My goal is to get at least $2,300 per month.

I have been told by an agent to price it at $2,300/month with everything included. I have been told by another agent to price it at the market value of $2,100 with a flat rate of $200 for utilities/amenities. I have even been told by a local real estate investor to drop the rent to $1,775 and have the renter cover the full $525 HOA value.

Has anyone had luck with one particular approach? I am leaning towards the $2,300/month option but do not want to miss potential quality applicants that might be using strict price filters while they search. 

 Thanks in advance! 

[Greg Weik]

As others have said, do not have your tenant pay HOA dues (who is the Realtor who suggested this?!)

Market rent is pretty straightforward with all utilities included.  Most websites (Zillow, Facebook Marketplace) have provisions for listing utilities included.  I'd check Zillow for listings in your building since the $525 covers them.  Ultimately, it's worth exactly what someone will pay for it right?  Closely track inquiries and you'll know if you've overshot.  Don't wait more than a week to drop the price if it's quiet out there. 

A word of caution, however, is to never say "all utilities" are included.  You always want to specify that, for example, trash concierge service is not included :) 

Here's how we setup the utility portion of every description paragraph for our listings: 

INCLUDED UTILITIES: Trash Removal.

TENANT PAID UTILITIES: All other utilities paid by tenant.