Due to rent payments and other tenant payments, owning rental property has long been considered an excellent way to earn regular profits. However, if you don’t charge an amount that is consistent with your area, in keeping with the quality of your property, and attractive to prospective tenants, you will considerably reduce these payments. But how do you determine the right rental rate? Typically, property owners will simply browse through various units in a given area, but there are more accurate ways to proceed, even if you are new to the industry. Read on to make sure you start off your rental property management on the right foot.
Browse Local Real Estate and Property Management Websites
Checking Craigslist is well and good, but you’ll get a more accurate representation of rental rates in your area by checking websites that feature experienced rental property managers and real estate agents, not to mention deal specifically with rental property. Make sure to keep an eye on quality as well as location and general price.
Contact Local Property Investment Companies
Whether you have yet to actually buy your property or are on the final steps before actually renting out your units, talking to a real estate agent can be extremely helpful. Ask about how rental property is usually priced in the areas they cover, how they have changed and more. This may be able to help guide your purchasing decisions.
Consult With Rental Property Management Companies
Not every property owner may want or need to hire a rental management service, but it is always worth considering: a good rental property management company will help you find great tenants, arrange maintenance and repairs, collect fees and more. They will also have software and set protocols to help determine how much rent a property should charge, and how much they should charge a property owner. A consultation is usually free; contact a reputable local company and discuss your property, their services, and the rates they would request for both.
Are you interested in owning rental property? How do you plan to determine your rental rates? Tell us about it in the comments below!