06 May What Should Your Property Rent For?
By Dana Browning
The rental market has been improving over the last few years and with it rental prices have steadily increased, yet many properties are still being rented under market value. There are many factors that go into pricing a rental property; these can sometimes be overwhelming. Here is a list of common factors we use when determining rental prices:
- Location: Start with rental sites like Craigslist, Trulia, and Zillow looking for similar properties in the same subdivision. If that search comes up with nothing, broaden your search to the same zip code. If you’re still not finding a comparable property, widen it to the whole city.Size: The biggest search criteria are how many bedrooms and square feet are offered, however, bedrooms carry a much higher weight than square footage. Search for properties that have the exact same number of bedrooms that are within 200 square feet of your property.Amenities: Does your property have granite counters, a bonus room, or a 3 car garage? These all impact the rental price and bring with it different types of renters. By creating a Comparable Market Analysis (CMA) for your rental and finding homes with similar amenities, you can narrow down the pool of other rentals and really hone in on a good range to price your rental.
While these are some of the biggest aspects, there are many more that should be considered when pricing a rental. We’ve created a FREE CMA Template to assist you in navigating the rental market. It can be downloaded by visiting www.capitalgroupco.com/awesome/renttemplate. Would you rather we do the leg work for you? Give us a call! We would be happy to provide you with a FREE, no obligation CMA or discuss current rental market conditions!