Mar 29 2017
How to Price Your Rental Property
Most landlords have no idea how to price their property correctly. Too often they err on the high end. This is a problem because too high prices make signing good tenants difficult which leads to long vacancies. Long vacancies = no $$$$.
Tip: Not sure how to price your rental? Ask your local property manager for an estimate.
No clue on pricing? Don’t guess!
- Ask your local property manager. The best approach is to call your local property manager and ask about pricing. On our website, you can “request a price”. Just enter your property’s details, and we follow up with what we think your property is worth.
- View active rental listings on property management websites Zillow, Trulia, and Realtor.com. Experienced property managers know what similar properties will rent for. These sites are great for checking out the competition.
- Go to Zillow and check rent estimates. Unless your property has special features like a pool or screened patio, Zillow’s rent estimates are quite accurate.
- Compare Craigslist rentals. There are obviously some shortcomings with this approach. You can only see what owners want to rent their property for, not what it actually rents for.
You need to generate enough cashflow to cover necessary expenses, such as a mortgage, taxes, insurance, homeowner association fees, maintenance, improvements, and landscaping fees. Nonetheless, it can’t be based solely on expenses because your property has to compete in the market. When setting your rental price, find a happy balance between covering your expenses and still being competitive.