How to Price Your Rental Property and Attract Good TenantsComing up with what to charge for your rental property(ies) can mean the difference between finding (and securing) tenants right away or scaring off potential renters and having to carry the costs of an empty unit.

There are several key factors that should be considered before you nail down an appropriate rent price for an investment home or unit. While a price that is too high has the potential to scare off good quality tenants, pricing a property too low could cause other issues, such as renters who may not take good care of it and/or may struggle to get you the payment on time each month. This, in turn, can do damage to your bottom line.

So, what are the items you need to consider? These ideally include all of the following:

  • Location – In this case, the more desirable the area is, the more rent you may be able to charge.
  • Space / Square Footage – The size of your rental is another key factor in determining how much to charge. Larger properties can oftentimes command more monthly rent.
  • Bedrooms and Baths – Another primary component is the number of bedrooms and bathrooms. Here, for instance, you can typically charge a higher price if there are more rooms available in the home or unit.
  • Amenities – Many potential tenants also look for various amenities – and are often willing to pay more, especially for conveniences like having laundry facilities on site. The same can hold true if appliances, such as the stove and refrigerator, are updated, as they can be more appealing to a potential renter.
  • Comps – Before you make your final decision on what to charge, it is recommended that you check out other similar properties in the area and see how much they are being rented for.

Once you have secured tenants – and locked in a rent price for the duration of the lease – it will be important to keep an eye out for price trends so that you can raise the amount in the future if demand remains steady or increases.

If you would rather not deal with the time-consuming tasks of finding tenants, collecting rent, and maintaining the physical aspects of your rental property(ies), then you may want to consider delegating these duties to a professional property management team.

Doing so can allow you to focus on other areas, like purchasing additional investments, or simply enjoying a passive income stream from your real estate rentals. So, if you own residential rental homes and/or units in the Central Florida / Orlando locale and you would like more information on how the process works, feel free to give us a call or email us and we’ll set up a time to chat. We look forward to hearing from you.