The question of what to charge for rent is a difficult but crucial one for property owners. Property ownership is a business, and you need to make sure your investment is paying off. There are also a lot of expenses associated with property ownership, and choosing the correct price will offset these costs. To set the right price, it’s important to know the cost of renting in your area, the scope of your competition, and the size of the property among other factors.
Examine Your Competition
Analyzing your local competition will help you set the right rent price, even if it just gives you a general idea of where to begin. Locating 3-5 properties nearby and calculating an average price is a good way to get a ballpark estimate. However, be sure to keep location, size and amenities in mind. An apartment complex that’s close to a natural reserve or body of water, for instance, may be more valuable than one next to a highway. Similarly, one part of town might be worth more to potential tenants if it’s closer to entertainment venues. Always select a property with a similar number of bedrooms and bathrooms in the neighborhood closest to you.
Consider Your Amenities
Every unit in your rental property is different, and you should price them as such. As an example, an apartment with a front-facing courtyard view should be priced differently than one facing a busy roadway or parking lot. Has the kitchen been remodeled in certain units? What’s the layout like? How much square footage is there? If you own a walk-up, you may even want to consider offering different prices depending on the number of floors there are. It can be a burden to carry a load of groceries up three flights of stairs, especially for older individuals. Potential tenants will consider that as they shop around for a new home. Regardless of what amenities you offer, though, they should help you set the right rent price.
Cover Your Expenses
All kinds of expenses are incurred by property owners on a monthly and annual basis. Some costs might include your mortgage payment, maintenance and repairs, vacancy expenses and more. In order to set the right rent price, you need to know your budget; otherwise, you will be pricing your property blindly. This is dangerous for property owners and may cause them to lose money without knowing it. In addition, if you aren’t able to handle your current costs, it may be time to raise the rent. You need to ensure that you can provide a safe, maintained property for your tenants, and that costs money. Fortunately, most people are willing to pay more for access to better schools, well-kept units and welcoming neighborhoods. Just remember: you’ll be on the right track if you can cover the costs associated with maintaining your property.
How All County Denver South Can Help
If you need a property management company in Denver, look no further! All County Denver South Property Management is here to help property owners have confidence in the quality of their tenants and the security of their property through knowledgeable and trustworthy property management services. From managing tenant relationships to lease enforcement, we look forward to working with you to see how your investment can be a long-term, stress-free asset. For a complimentary quote, or to learn more about setting the right rent price, call us at (720) 664-4550.