How Much Should I Charge for Rent: Tips to Rental Rates
Updated Sep 03, 2024 • 11 min read
Summary
As an independent landlord, it can be difficult to determine how to set a good rental rate, especially when you’re starting out. Thankfully, there are many practical things you can do to help figure out how much to charge for rent. These include: looking at similar properties in your area, checking out market trends, considering amenities and property quality, and paying attention to the season. Reviewing available data can help you set a fair market rental rate that attracts quality tenants while bolstering your business.
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Like walking a tightrope, setting a good rental rate is a balancing act. Setting the rate too high could lead to costly vacancies. A low rate might be more attractive to tenants, but may also overextend your finances and send you tumbling down into bankruptcy and foreclosure.
As an independent landlord, the key to success is setting a rental rate that is not only profitable for your property, but also is competitively priced to attract good tenants.
However, determining the proper rental price can be challenging—especially for newer landlords. While property management does carry some inherent risks, there are many things you can do to help protect your investment. Often, these preventative measures include gathering as much background information about potential tenants as possible.
For example, running background checks through a reputable service like SmartMove® can help you make more confident leasing decisions. Similarly, using publicly available market data may help you set a rental rate that’s good for you, your tenants, and your bottom line.
Below you’ll learn more about how to finding the potential rental price sweet spot for your unit, as well as tips for getting a good rent estimate, and the importance of including your amenities before setting your rental rate.
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