Determining the right rental price for your home depends on a number of factors. Ultimately, the amount you charge will depend on the market. You cannot price your property much higher than what the market demands, otherwise it will remain unoccupied. It’s important to charge as much as you can; you don’t want to leave money on the table or rob yourself of potential cash flow. But, overpricing your home can often be more expensive than underpricing it. Study the market and get to know what homes similar to yours are renting for.
Market influences as well as the size, location, and condition of your property will affect its price.
Property Location Impacts Price
Everyone knows that location is an important factor in real estate. You’ll earn more on your property when it’s located in a desirable location. If you are near good schools, easy commuter routes, and within proximity to shopping, grocery stores, and other types of retailers, you’ll be able to earn more in rent than if your home is more remote. When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as you. Rental prices can change from street to street and block to block.
Consider Your Home’s Size and Layout
If you’re renting out a single-family home, you’ll probably be able to price it higher than you would an apartment. Most renters are looking for three bedrooms, two bathrooms, a garage, and some yard space when they rent a single-family property. You’ll need to lower your price a bit if the property is too small for the area or even if it’s too large. It’s rare to find someone in California City who wants to rent a seven-bedroom property with six bathrooms. Open floor plans, fenced backyards, and amenities make a difference in your price, and can help you earn more.
Property Condition Counts
There’s not much you can do about your property’s location and size. However, you can control its condition. Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants.
Pay attention to the work your property needs. Everything should be fixed and in good shape before you rent it out. Consider making a few small and inexpensive upgrades. Fresh paint, new floors, and minor improvements can help you earn more in rent. For example, if you put in ceiling fans or energy efficient appliances, you’ll be able to ask for more, and your tenants will appreciate the lower energy bills. New hardware on the cabinets and drawers can make your kitchen look brand new. Upgrade the lighting and the window blinds. These small things won’t cost you a lot, but they’ll help you earn more money every month.
We can provide you with a free rental analysis and help you establish a good rent for your home.
Contact us
at JBL & Associates for more information.
