5 Factors to Consider When Setting Your Rent Price

Finding new tenants can be stressful- creating a rental listing and worrying about a rental vacancy. Not to mention, you have to set the rent price for your rental property.

To make the process easier, we compiled 5 factors to consider as you set your rent price.

Timing

Rent prices are higher during the summer, which is peak rental season. This occurs for a few reasons. For one, it’s easier to move during the summer months. Harsh winter conditions make it difficult to haul furniture. Second, most parents want to move before the new school year begins, meaning families are more likely to move during the summer.

For these reasons, rental demand and prices peak during the summer. If you’re renting during the summer, then you should raise your rent price accordingly.

You should also consider how many days away from a vacancy you are. The closer you get to vacancy, the more likely you are to accept a lower rent.

To avoid this, we recommend starting the lease renewal and tenant search process early, typically about 60 days before the move-in date. 

Location

Prices vary based on location. A rental property in a rural part of the country will rent for less money than a property in a metropolitan area.

Beyond considering what city and town you’re in, you should also consider what neighborhood you are in. You want your rent price to make sense in your location.

Rental Market

We recommend considering comparable rental units in your market. If you do a quick search of other units on the market, you can learn what units are renting for that are similar to yours.

Look for units in your exact neighborhood that have similar amenities to you.

Price-Value Relationship

Your rent price should be a direct reflection of your unit’s value. Your unit’s value is dependent on location, neighborhood, desirable amenities, if it’s renovated, if utilities are included, if it’s furnished, etc.

For example, if your unit is renovated or has in-unit laundry, then you can get away with a higher rent price.

Also, consider what is included in your rent price. If you pay for utilities or include parking, then your rent price should be slightly higher.

Marketing

The way you market your rental property has an effect on how your rent price is perceived by prospective tenants.

You want to ensure you’re showing off your property in the best light possible. If you have fantastic rental listing photos, show off that you’re a great landlord, and advertise that you will collect rent online, then tenants will pay a higher rent price for your valuable unit.

Conclusion

Deciding your rent price doesn’t have to be hard. When you consider these five factors, your decision is much clearer.

One last thing to consider is that your rent price should change over time. Every time you find new tenants, you should re-consider these factors. After all, rental markets fluctuate.

Comment below to share your thoughts- what else do you consider when setting your rent price?