The difference between success and failure with rental property can oftentimes hinge on setting the proper monthly rent on your investment. For example, by charging too little just to entice renters, you could end up losing money every month. (You could also attract the wrong type of renter which could, in turn, end up costing you in the long run, too).
Yet, if you charge too much, it could potentially scare away some very good quality tenants – and leave you with an empty property for a longer period of time. But, by following certain steps, you can provide yourself with a happy medium in terms of price that can give you and your tenants a win-win.
First, you should start out by checking the comparable rental listings in the immediate area of your investment property. There are any number of places where you can gather information, such as the Internet, the local newspaper, and Craigslist.
The figures to highlight should ideally be those of the properties that are in the closest proximity to yours, and that are also valued at roughly the same price as the home or unit you have.
In addition to the property itself, there are other factors that you should consider, too, such as:
- School district
- Nearby parks, shopping, churches, etc.
- Other amenities that you may be offering, such as a pool, washer and dryer, garage or carport, and / or payment for certain services like cable TV
Once you have gathered and compiled all of the pertinent information, you can set a base monthly rent price. If you do end up getting only a few calls, you may need to consider lowing the price slightly to see if that changes your result.
Working with an experienced property manager can also help when it comes to determining the ideal monthly rent price, as well as taking care of the day-to-day property related activities such as maintenance and tenant communication.
For more information on how partnering with a property manager for your investment(s) in Orlando or the surrounding area can help, give us a call today.