How Much Should I Charge for Rent?

A question we often get from owners is: “How much do you think my property can rent for and how long will it take to find a renter?” While we wish we could give a one-size-fits-all answer to this question, this mostly comes down to two factors: price and condition.

A simple rule to remember is premium property = premium price, average property = average price, below-average property = below-average price. So, when it comes to pricing your rental, it’s important to understand what the market is looking for, the trends, and what other similar properties are going for in your area.

If you know you have an average property but would like to charge closer to a premium price, it’s still possible for your home to be rented; however, it’s important to expect a longer vacancy. Some owners like to take this option if they know they have the bandwidth to sustain a longer vacancy. High risk, high reward, as the saying goes. If you have an average property but know that you do not have room for an extended vacancy, then pricing your rental at a below-market price is a sure way to quickly fill that vacancy.

Some owners like to go years between upgrades and remodels. While this strategy is acceptable and very common, it’s important to remember that as each year passes and each resident moves out, it will be increasingly harder to receive top price for your property. As time passes, owners will notice that even a below-market price for a below-market property still creates an extended vacancy. This is because it’s now below the acceptable range of what the market is looking for. We believe, though, that we can rent any unit, even if it is outdated, for the right price.

There is a sweet spot, however! We find that when owners implement small upgrades between turns, they are able to keep their property at an above-average or premium price throughout the property’s rental life. This strategy is also great for preserving the equity of the property and finding renters that are looking to live in the property for an extended amount of time.

In conclusion, pricing your rental property requires knowledge and strategy. Reach out to the experts, though! We’ll be able to help you find the right price that meets your goals.