4 Ways to Determine the Rental Fee of Your Property

Trying to make a profit on your investment property is one thing; setting the price for it is another.

With the competition as strong as it is, you need to make yours stand out and make it a desirable option for the tenants. It means pairing a high-quality offer with the right rental price. With a little market know-how, research and math, you can determine the suitable rental amount for your investment property.

Take these four tips into consideration when determining the rental fee of your property:

Consider the Market

Depending on the market where your property is located, the formula to figuring out a proper rental price is pretty simple: the higher the competition, the lower is the price. However, if you want to have the advantage compared to other properties, survey the market, see what the general prices of those properties are, then find the middle ground that appears ideal for your property.

Research Rental Prices for Units Similar to Yours

It may be a little hard to find this out yourself, as all information of this type usually is confidential (unless you are a buyer.) You can always try to find out how much rent others are charging for their units to determine the starting point of yours. You can also consult sites like Zillow, Craigslist and Trulia.
Start with practical things a rental unit should have: those that resemble yours by age, square footage, amenities, number of bedrooms and bathrooms, location, etc. Make a list of properties that you find which match yours or are similar and their occupancy rate. See if you can ask a similar rental price. If you want to be sure, talk to a property manager about the exact estimate.

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