Written by Marble Team
Finding the right price on a rental property can be difficult for first-time landlords. It would be best to consider many factors when setting the price for your units, such as a mortgage, condo fees, and insurance. Setting a reasonable price can be tricky, but ensuring your home is competitive in the current market is necessary.
Here are some factors to take when setting a rental price:
One of the most crucial concepts to comprehend when evaluating rentals is comparing them to other properties in the same area. You want your property to be priced right concerning its neighbors. This shows potential tenants that you are well versed in what you’re doing and helps you set rates that will result in high occupancy rates and long-term tenant retention.
Differentiate the price of your one-bedroom units, or you could be charging too much for each unit. Each house is unique, so why not consider adjusting prices according to the amenities? Your customer will feel their investment was worth it after they experience your gorgeous view, updated appliances, construction materials, and place for recreational activities such as a swimming pool, gym, and more. Pricing according to amenities may be the better option to maximize your profits.
Location is one of the most important factors when setting up your rental price, whether it's a room in your house or an entire home/apartment. Good places are more expensive than bad ones. The basic rule is that the more central the property, the higher its value. Remember that proximity to public transportation, schools, and shopping centers can significantly impact tenant demand for your property compared to areas with high crime rates or noise levels that may distract residents.
While knowing what rents are like in the area can help, you should also check and know how much it costs to live in your target area and use that as a guide when setting your rental rates.
Setting rental prices is essential, but make sure your rental price is always dynamic and in sync with the market. You can still adjust the price up or down to react to the market, offer competitive rates and have the best chance of filling your vacancies.
Working out your price and deciding the best way to present it can be daunting, especially when you’re new to the world of rental management. So we try to make this process as simple as possible for you.
At Marble, we make it easy for you to find comparable apartments at other properties within your community so you can adjust your rental rate accordingly, helping your property stay competitive with similar apartments nearby. Remember that the correct price will attract prospective tenants to your property and generate some income for you. So, tap into the power of pricing!