How Much to Charge for Rent | Raleigh Property Management Tips
System - Monday, May 28, 2018
Before we talk about how to set a rental price, let’s talk about what a rental price is not.
It’s not based on the amount of your mortgage payment every month. It’s not based on your expenses, your property management fee, the HOA fee, or your desire to pay all those things and still remain cash flow positive every month.
Rent price is simply based on what a renter will pay for the property. How do you figure that out?
Conducting a Comparative Rental Analysis
To determine how much your rental property is worth, you’ll need to consider some main comparison points. Those will be the number of bathrooms, number of bedrooms, and the number of heated square feet in the property. When you’re gathering comparables, use properties that are in your same location or neighborhood.
Once you know your own numbers, get on Zillow and see what your competition is doing. The competition is of course the other rental properties in the area. Make sure you’re setting your price at or below what the competition is charging.
Professional Property Management for Better Rental Accuracy
Zillow is a good way to get a quick estimate, but it doesn’t show what the property actually rented for, and it doesn’t show how long it took the property to rent. To get those numbers, you’ll have to contact an agent or a property manager with access to the Multiple Listing Service (MLS). Some agents might do that for free, and others might charge a fee.
We have a tool on our website that generates a rental estimate for comparable properties. Be sure to check that out, and if you have any questions, please don’t hesitate to contact us at Paramount Realty Solutions.