Market rent is always going to dictate how much rent to charge. It doesn’t matter how much you think your home is worth, and it doesn’t matter how much your mortgage and expenses add up to every month. When you’re pricing your home, it’s important to be accurate and competitive. Pricing your home too high will result in a longer vacancy period, which will be expensive, and pricing it too low will result in less ROI over the short and long term. Get an accurate analysis of rents in your area, and consider your property’s location, condition, and upgrades.
How Much Can I Rent My House For? Location and Amenities
Location is important, whether you’re listing a property on the sales market or the rental market. Tenants want homes in good neighborhoods, close to schools and shopping and restaurants. They want a reasonable commute and pleasant surroundings. Consider the amenities in the neighborhood as well. You can usually charge a little more if your property is in an HOA or a condo association that has a pool, a gym, and other facilities.
Renting Out My House: Condition and Curb Appeal
The age and condition of your property will also impact your price. Make sure there’s good curb appeal, because first impressions count. Keep the lawn mowed and the bushes trimmed. Remove any debris and make sure the home looks appealing from the outside. Inside, it should be clean and uncluttered. Put some new paint on the walls and make sure the lighting is good. These things will make tenants want to rent the home, and you’ll be able to charge more.
Rental Value of My Home: Updates and Renovations
If you’ve made some updates or upgrades to your property, those can factor into your rental price. Tenants are especially drawn to kitchens that have new appliances and flooring that has been recently installed. Even some minor updates will help. Consider replacing the hardware on cupboards and drawers, and put in ceiling fans. These things do not cost much and will go a long way in affecting what tenants are willing to pay to rent your home.
A professional property management company can help you obtain a rent estimate and explain the best way to price your home. It’s important to know the actual rental value, and not what other homes are being marketed for. Just because a house is listed at $2,000 per month doesn’t mean it will rent for that. Depending on the demand, it could ultimately rent for $1,700.