So, you’ve purchased a wonderful investment property in Temple. It’s ready for renters and you’re excited to get the marketing campaign going. But before you start advertising your rental property, you need to work out how much to charge for rent.
What factors should you consider? How can you find the right cost that attracts lots of potential tenants but also earns you a steady return on your investment? Don’t worry, we’ve got you covered! Keep reading to learn more about pricing your rental property in Temple.
Factors to Consider When Pricing Your Rental Property
When you start considering the optimal rent price for your property, you’ll need to do a little research. This can start with checking out your competition in the local rental market. Look for rental properties in your area that are a similar style and size to your property and offer similar amenities to residents.
You can base your comparison on the following:
Neighborhood
Start by checking out other rental properties in your neighborhood and find out how much landlords are charging. Although the properties might differ in size and amenities, you’ll be able to gauge the average cost of rent in your area of Temple.
Number of Bedrooms and Bathrooms
A three-bedroom, two-bathroom house is going to cost more than a two-bedroom, one-bath duplex. Make sure that when you’re looking for comparable properties in your area, they have the same number of bedrooms and bathrooms as your property. Looking at square footage can be useful, as well.
New Construction vs Old Construction
When you’re looking for comparables, consider when the property was built. A new build is likely to cost more than an older property, since a new property hasn’t gone through the normal wear and tear of an older space.
Where to Source Comparable Properties and Information
As a landlord, there are a lot of resources you can use for price comparisons. Here are some of them:
Online Ads
Look through popular rental listing sites for similar rental properties in your area to track. Check on properties that have remained on the market for a few weeks. Monitor when these units are no longer available for rent. Note which units made adjustments to the rental rate while they were listed.
In-Person Research
Another good option to take is visiting an open house to perform personal research. This method provides immediate information and allows you to ask the landlord questions where you can gauge the level of interest from potential renters.
A Property Management Company
Property managers have experience in the rental market and a solid knowledge of average prices for all different types of properties. Their rental price analysis is more accurate since they know the fluctuation of demand in the local area. You can trust that they will set the optimal rental rate for your Temple property.
When to Adjust Your Price
If you have multiple properties or units in your portfolio, you might be tempted to assign a uniform rate for all of them. However, this strategy can lead to potential income loss. Unless you own a multi-family property with many of the exact same units, you should evaluate each rental individually, based on renovations, size, and amenities provided.
Here are questions to guide you:
- When was the last time you did renovations on your rental property? You’re likely to attract more interested tenants if you can offer new flooring, energy-efficient appliances, and perks like a parking space or garden. You don’t have to make huge changes – a little can go a long way to make your property more attractive.
- Does your Temple rental property have several bedrooms and bathrooms? Potential residents are open to paying more in rent for a bigger property.
- Do you offer highly-desired amenities to renters? If your rental has a ton of storage space and convenient appliances like a dishwasher and in-unit washer and dryer, renters are bound to become more interested and will be willing to pay a higher rate.
Market Demand Dictates the Right Rental Rate
Remain flexible when setting the cost of rent for your Temple rental property. Be aware of the changes in rental market demand and supply. You may need to tweak it now and then, depending if the economy is rising or in a slump.
Inflation is another thing to consider since renters tend to move to smaller spaces when rental rates increase. Another thing to keep an eye on is the progress and development happening around your neighborhood. If you spot new infrastructure and more new businesses in your area, then you can adjust the rent to match the rental property demand in your location.
Bottom Line
Landlords can tap into many resources to make sure they’re setting the right rental rate. Checking the competitors in your area is a great start, and you can do research online and offline. It’s a good idea to be attuned to market movements so you know when the cost of rent should be adjusted.
Landlords can also partner with reputable property management companies, like Real Property Management Talent. We have years of experience in the Temple rental property market and know how to set a price that is reasonable for renters while offering you high returns on your investment.
Along with this service, we also market property vacancies, screen potential tenants, collect the rent, take care of property maintenance and repairs, and more. Contact us today!
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