When it comes to setting an appropriate price for their rentals, property owners must consider more than location. Many other factors will help you set the correct rental price. Here’s a brief guide to the things you should do and think about when you’re determining the correct rent to charge for your rental property.
Condition and Comps
A sparkling clean, freshly painted unit with new appliances, attractive landscaping, and a tidy exterior will obviously rent for a higher price than a shabby home that looks neglected. The better the place looks, the more potential tenants will look at it—and the unit will rent faster than one that doesn’t show as well. However, you should avoid overpricing a unit just because it has some new appliances by checking out the comps.
Anyone who has been involved in buying and selling real estate is familiar with comps. These are properties with locations, sizes, and amenities similar to those of the unit you’re pricing. In terms of location, comps can vary within neighborhoods down to the street and even the block. To set a good price for your rental, research properties with the same number of bedrooms and bathrooms and look for similar amenities. Both the property and the rent must be attractive to prospective tenants. A house with a lovely landscaped yard might go for more than one with only a concrete patio. A brand-new home might be more attractive than an old one, but don’t underestimate the charm factor of a well-maintained vintage home with built-ins and hardwood floors supplemented with updated appliances. On-site parking, laundry facilities, and utilities included in the rent are also factors that will help you set the correct rental price.
Timing and Demand
Your tenants will probably sign one-year leases, but if they’re looking for rentals at the same time of year everyone else is looking, they’re competing with other prospective tenants for desirable properties. Market demand may affect the rent you can charge and still attract tenants willing to commit to the terms of the lease you offer. For example, families looking to settle in before the school year begins will drive demand for larger, single-family properties with additional bedrooms.
If you need help landing tenants for your Atlanta-area rental, consider partnering with an experienced Suwanee property management firm such as Excalibur Homes.