There are many factors that will play a role in determining a fair monthly price for your rental properties
. Features that make your property more desirable than the competition justify your ability to ask for a higher monthly rent. At the end of the day, you’ll have to spend time doing a fair amount of research and evaluation, and we’ve compiled several things to take into consideration that may affect your rental pricing.
Is your property close to schools, shopping, restaurants, or public transportation? If so, you may have an opportunity to ask for a higher rent. Consider the walkability score of your rental property and the value it could provide to your tenants. You’ll also need to keep in mind the safety of the neighborhood or area in which your property is located. A newly renovated rental property located in an undesirable neighborhood is unlikely to garner a higher than average rental rate.
Square footage will be one of the top factors influencing your rental rate. Tenants are going to consider the price per square foot to ensure the best bang for their buck. A property with slightly more square footage is likely to be more desirable than a smaller property, even if both have the same number of bedrooms and bathrooms.
Closets, kitchen cabinets, garages, or sheds all raise the appeal and value of a rental property. If you have the option, consider offering some sort of storage opportunity to your tenants for an extra monthly fee.
Properties that include an in-unit washer and dryer will generally have a higher monthly rent. Other desirable appliances include a dishwasher, garbage disposal, and microwave. If your property requires tenants to obtain their own refrigerator, washer/dryer, or other appliance, you may not be able to rent it out for as much.
If tenants will be on their own for all of their monthly utility bills (electricity, water/sewer, trash, etc.), reflect this in your rental price. If you’ll pick up a few or all of the utilities every month, this should also be reflected in your monthly rate. Some tenants may prefer the ease of paying one bill every month with utilities included, even if it means paying a bit more.
Offering things like internet, cable, swimming pool service, or landscaping included with the rent is a great way to attract tenants and potentially raise your rental rate. Other amenities tenants are willing to pay more for include fitness centers, shared common areas, and outdoor features like barbecue areas or rooftop decks.
Setting an appropriate rental rate means striking a balance between generating income, maintaining a competitive price point, and attracting good tenants. At CIVIC, we have long-term financing options available for rental property investors. Give us a call at 877-472-4842 today to get started!