With the housing marketing still in decline the rental market is booming. People who can’t otherwise afford to buy a home are renting homes, condos and apartments. But how do you establish a fair rent payment? One that will attract prospects but still give you a fair profit?
For many years renting has been looked down upon by most of the country. After all, home ownership is considered part of the American dream. But with the economy in its current state many people have to rent and many are choosing to rent while they wait for the housing market to rebound.
If you own a rental property–be it a home, condo or an apartment building–the burning question is how much do I charge in rent. The same way appraisers evaluate homes for sale can help you determine an appropriate rent for your dwelling. First, consider the neighborhood. Is it an upscale area with nearby shopping, recreation and top-flight schools? If you can, find out what other landlords in the neighborhood are charging. This many be requiring a little sleuthing on your part by pretending to be interested in the dwelling yourself but this effort–especially if you can visit several properties in the areas–will be invaluable in determining what the going rate is in the neighborhood.
This tactic will work just as well for condos and apartments. Of course, you need to consider the amenities your property offers that the competition doesn’t. If there a pool or pool access? A yard? Garage? A fireplace? Ample closet space? An Alarm system?All the desirable appliances? And finally, what condition is your property in. Has it recently been painted inside and out? What about flooring? High quality carpet or even wood or tile flooring can make a home very appealing to prospective renters and enable you to set a higher rent payment than the competition.
Remember to point out the benefits of renting. In most cases all repairs except minor ones are the responsibility of the landlord. This is a very appealing point to many people. What’s more, in the case of condos and apartments landscaping and gardening also fall under the duties of the owner.
All these facts can contribute to the rent payment you set. Clearly a view or some other extra special amenities can up your desired rent. But remember, every month you wait to get the rental amount you want is a month you have to carry the mortgage on your own. While you may not want to settle you many be able to arrange some creative payment options. For instance, a greater security deposit might give you the sense of security you need to feel comfortable with the arrangement.
Whatever mode you employ to establish a rent payment you can live with you also have to establish a rent your tenants can live with as well.