When determining how much rent to charge for a property, it is important to get a detailed rental market analysis. This analysis will help determine a rental price for the house, condominium or apartment that is fair. A fair price will make the property more attractive to prospective tenants. If priced too high, the property will sit vacant, and if priced too low, the landlord loses money.
Area Rental Analysis
The first step is to review the location of the property to determine if there are any other comparable rentals. Try to stay as close to the rental address as possible when looking at other properties for comparison purposes. For example, if a two-bedroom, one-bath condominium rents for $800 per month in the same complex, then that can be considered a comparable rental property. However, if that same condominium is in a different town, it is not suitable for comparison purposes.
Similar Rental Properties
Compare similar properties currently available for rent. For example, do not compare condominiums to houses, as they are very different markets. When looking at houses for rent, be certain they are the same style house, such as ranches or two story houses. Also, try to find prices on properties that have a similar number of bedrooms, bathrooms and square footage.
