{"id":8347,"date":"2018-02-26T15:15:04","date_gmt":"2018-02-26T23:15:04","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=8347"},"modified":"2018-02-23T11:13:17","modified_gmt":"2018-02-23T19:13:17","slug":"8347","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/02\/8347\/","title":{"rendered":"Determining the Right Rental Price for the Property"},"content":{"rendered":"<p style=\"text-align: justify;\">Having a competitive rental rate is important to any landlord. But if you aren\u2019t prepared, determining the right rental amount can be overwhelming. You want to make sure that the rent you charge prospective tenants is attractive.<\/p>\n<p style=\"text-align: justify;\">Charging too much might make it unattractive, while charging too little can eliminate the profit potential.<\/p>\n<p style=\"text-align: justify;\">So how do you choose the proper rent price for your property?<\/p>\n<p style=\"text-align: justify;\">Here are some factors to consider.<\/p>\n<p style=\"text-align: justify;\"><strong>1. Amenities determine the proper rent price<\/strong><\/p>\n<p style=\"text-align: justify;\">Avoid setting a standard rent price, unless the units are identical. Instead, charge rent based on the amenities that are included. Here are some questions you should ask yourself regarding amenities :<br \/>\n\u2022 If you are renting a condo, are there building amenities, such as a pool or fitness center, that should be included?<br \/>\n\u2022 Will you allow pets? If so, will you simply take a deposit or factor that into rent?<br \/>\n\u2022 Will your rental property be furnished?<br \/>\n\u2022 Is parking included?<br \/>\n\u2022 What about lawn maintenance and snow removal? Will you or the tenant be covering that responsibility?<br \/>\n\u2022 Will you be including utilities in the rental price, or will the tenant have to pay that independently?<\/p>\n<p style=\"text-align: justify;\"><strong>2. The one percent rule of thumb<\/strong><\/p>\n<p style=\"text-align: justify;\">The one percent rule states that the gross monthly rent should be at least one percent of its final price. Basically, this means that you can charge around one percent of your home\u2019s value for rent.<\/p>\n<p style=\"text-align: justify;\">For properties that fall above $100,000, you would calculate the rent using a slightly lower percentage of 0.8%. Conversely, for less expensive properties, you would use a higher percentage around 1 \u2013 1.1%.<\/p>\n<p style=\"text-align: justify;\">For this rule to work however, you would need to have the right property valuation.<\/p>\n<p style=\"text-align: justify;\"><strong>3. Check out the competition<\/strong><\/p>\n<p style=\"text-align: justify;\">See what other landlords are charging for comparable properties in your area. A way to go about this is to go over your local newspaper. You can also check the rental listings on Craigslist. This will give you an idea of the average going rent rate in your area.<\/p>\n<p style=\"text-align: justify;\">Additionally, you may also want to go and check out other similar properties in person. For a good estimate, the properties should be similar in both size and condition.<\/p>\n<p style=\"text-align: justify;\">Also, you may want to talk to other landlords or realtors in your area. Ask them what they think your properties should rent for.<\/p>\n<p style=\"text-align: justify;\"><strong>4. The right rent is profitable<\/strong><\/p>\n<p style=\"text-align: justify;\">Rental properties should be profitable. The rent price should, at a minimum, be enough to cover all of your property expenses. For you to be profitable as a landlord, the rent should cover :<br \/>\n\u2022 Vacancy costs<br \/>\n\u2022 Maintenance and repairs on the property<br \/>\n\u2022 Your mortgage payment<br \/>\n\u2022 Insurance costs<br \/>\n\u2022 Property taxes<br \/>\n\u2022 Emergency repairs<\/p>\n<p style=\"text-align: justify;\">With the right rent, you should be able to have, on average, about 6% of the rent as profit.<\/p>\n<p style=\"text-align: justify;\"><strong>5. Consider market shifts<\/strong><\/p>\n<p style=\"text-align: justify;\">The housing market shifts every once in a while. Therefore, it\u2019s important to know where the economy currently stands. Adjusting your rent to accommodate such fluctuations is crucial.<\/p>\n<p style=\"text-align: justify;\"><strong>6. Livability leads to profits<\/strong><\/p>\n<p style=\"text-align: justify;\">Livability is the sum of the factors that add up to a community\u2019s quality of life. For example, scenery, environmental quality, and access to services and facilities.<\/p>\n<p style=\"text-align: justify;\">To determine your property\u2019s livability, consider how your specific rental unit is different from others in the area. Ask yourself the following questions: Does it have more space? Does it offer a better view than most other units? How attractive is it to potential tenants?<\/p>\n<p style=\"text-align: justify;\"><strong>7. Compare historic unit prices<\/strong><\/p>\n<p style=\"text-align: justify;\">Adjust your price accordingly by checking the historical unit prices. You may need to ask the previous owner directly. You may also be able to find this information on real estate websites like Apartment Guide.<\/p>\n<p style=\"text-align: justify;\"><strong>8. Take into account your vacancy tolerance<\/strong><\/p>\n<p style=\"text-align: justify;\">Vacant properties can be costly. They can quickly fall into disrepair and may become a target for vandalism, theft and arson. That being said, some landlords can be tolerant to vacancies than others.<\/p>\n<p style=\"text-align: justify;\">For instance, you may be able to survive a few months without a problem if you\u2019ve afforded a big down payment and your monthly expenses aren\u2019t a burden. In such a case, you may be able to wait for the right opportunity to cash in. If not, you may need to fill the property as soon as possible.<\/p>\n<p style=\"text-align: justify;\">These are most of the factors that a landlord needs to take into account when choosing the proper rent price for their properties. With the right rental price, your tenants will find value in the property and in what they are paying. Who knows, this may even set you up for a great landlord-tenant relationship.<\/p>\n<p><a href=\"http:\/\/realtybiznews.com\/how-to-choose-the-proper-rent-price-for-your-property\/98747138\/\" target=\"_blank\" rel=\"noopener\">How to Choose the Proper Rent Price for the Property<\/a> by Jamie Richardson | Realty Biz News<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having a competitive rental rate is important to any landlord. But if you aren\u2019t prepared, determining the right rental amount can be overwhelming. You want to make sure that the &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/02\/8347\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-8347","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Determining the Right Rental Price for the Property &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/02\/8347\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Determining the Right Rental Price for the Property &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Having a competitive rental rate is important to any landlord. 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