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What is the Best Rate for Your Rental Property?

If you’re a new property owner, deciding on how to set your rent prices can be daunting. But it’s an important decision that can ultimately make or break your success. Here are some ways you can decide on the best price for your rental property.

Location

Your prices are determined by several factors, but the biggest consideration is where you’re located. If your rental property is in an area of town where more people want to live, you’ll naturally have a better opportunity to set higher rates. People are willing to pay more for the convenience of location, such as being close to downtown where they work.

Size

Obviously, the square footage of a property will affect the price. And tenants understand this. Those with families who are looking for several bedrooms will be willing to pay more for the needed space. As the owner, you were the one to initially had to pay the price for the additional space, so keep your return on investment in mind.

On the other hand, you’re more likely to get single people looking for studio apartment sizes, so this is good to keep in mind depending on the size of your property.

Amenities

If you have several nice amenities, such as pools, gyms, etc., remember that they cost more to upkeep and pay for insurance protect yourself from potential risk to those using them. The more amenities, the more you’ll need to incur that in the rent cost.

Even if your property is around public amenities that aren’t costing you, such as nice schools, stores, and parks, people are still generally willing to pay more to be close to the niceties.

Consider All Factors

Although I’d be nice to have a set number to give you for what you should charge, the truth is that there are many factors that go into the rent price decision. But considering your location, size and amenities is a great place to start. Remember that one of the main reasons for being a rental property owner is to make a profit from the rental, so keep that in mind when setting your prices.

If you still need help with setting your prices, you can also hire a rental property management company to handle it.

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