Pricing Your Rental Property

Whether you are a veteran landlord or a first-time property owner ready to test out the market, deciding…

Whether you are a veteran landlord or a first-time property owner ready to test out the market, deciding how much to charge for rent can be one of the most challenging parts of the job. However, it is still a critical part of the rental process, as it determines your ROI, vacancy periods, tenant quality, and more. While most landlords usually look at nearby properties, pick a figure, and keep moving, you risk compromising your return on investment.

At 3 Options Realty, we leverage state-of-the-art equipment and strategies to determine rental rates that will make the most significant profits. Our property managers have extensive industry knowledge and expertise, guaranteed to make rental ownership lucrative and stress-free. Before you decide how much rent to charge, here are factors to help you calculate the rental rate.

Property Worth

The most common way to get rental rates is by using the overall property value to get a base value. This is an effective technique employed by landlords renting out their former residence since they know the property’s actual value. The rent of a property is typically between 0.8% and 1% of the total property value.

Unfortunately, this technique is affected by the price range of your property since charging high rental rates based on the property’s value can scare away good tenants. A property management company can help you determine the correct rates suited for your property without affecting the bottom line: turning a profit.

Our Services

Our Guarantee

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Eviction Protection

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Property Management

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The 3 Options Realty Difference

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Local Rent

A common mistake most landlords make when deciding what to charge for rent is to survey rental rates in the area. A significant downside to this method is that you must compare similar property rates to get accurate results. You can’t reach the rental rates of a single-family unit with a studio apartment.

As a reputable property management company, we can help you determine the proper rates for your rentals by assessing similar characteristics in the following areas: lot size, number of bedrooms and bathrooms, year built, recent remodels, and added amenities.

Consider Demand

Even if you have gathered helpful information to help you make an informed decision, rental value can change drastically because of demand. Demand can affect rental costs positively or negatively, so it is always crucial to work with reputable property managers who can ensure your unit makes money at the end of the month. When the demand is low, renters make the rates lower to bring in tenants, but you can raise the rent when the market is high.

Cover Your Expenses

Rarely do landlords consider the expenses they incur to maintain the rental property and ensure it is in tip-top condition. While all the factors listed above give you an idea of what to expect from your investment, you need to consider other factors that can affect how much money you make. These expenses include mortgage payments, maintenance costs, HOA fees, taxes, vacancy period costs, and property management costs.

Contact us at 3 Options Realty and schedule a consultation with our professional property managers. We work with you to ensure you reap optimal benefits on your investment by charging rates that attract good tenants. Let us help you turn your rental business into a solid income-generating venture.