If you’re a first time landlord, or if you’ve owned investment property for a while but you just aren’t sure what would be a fair price to charge, there are some strategies that you can use to narrow down a fair rent amount, while at the same time still taking in a profit.
Typically, the monthly rent price should ideally fall between 0.8% and 1.1% of the value of the property. As an example, if you own a rental property that is currently valued at $150,000, then you should charge somewhere between $1,200 and $1,650 per month.
You could also use a comparison method. Here, for instance, one of the first steps to take is to get a feel for what other similar properties in the area are charging. When doing so, make sure that you are comparing apples-to-apples.
For instance, do they (and you) offer various amenities like a washer and dryer on premises? Is there a pool in the yard? Also, are you comparing units with the same number of rooms and square footage?
Something else to consider is whether or not a fair monthly rent price will cover all of your outgoing expenses. These costs can include the mortgage (if you have one), as well as the property insurance, and any of the utilities that you pay.
Ideally, your rental property will bring in enough to cover both your expenses and your time. In some cases, it makes sense to free up time by hiring an experienced property manager who will deal with finding and managing tenants, as well as maintaining the day-to-day needs of the property and emergencies.
If you’d like to learn more about how a property manager can assist you with pricing and managing your Orlando rental property(ies), just give us a call today for additional details.