When an individual acquires a rental property, they tend to envision it as an extra income source that requires them to do very little work in exchange for the benefits it will provide. But owning a rental property — and getting the most out of it — isn’t quite so simple. The property has value, but for many owners, the actual value isn’t understood, especially in terms of the amount that should be charged to renters each month. The proper rate must be determined in order to get the most out of a property, and to ensure that ownership of it is worth the time and money spent to maintain it.
Are you a rental property owner?
Are you afraid that you aren’t charging enough rent
It’s something that can make a lot of property owners anxious, but the good news is that it doesn’t have to be a guessing game. Determining the appropriate rental rate for your property is possible if you follow the right steps.
Determining the Proper Rental Rate — A Systematic Process
Whether you are renting out a huge home or a humble apartment, you need to be able to determine the proper rental rate if you want to ensure that it adds to your income. This is best done through a systematic process that takes into account a large number of factors. Although this process can be time consuming, it’s well worth it, especially in the long run as you work to make your property work for you!
Some people will tell you that it’s simple: all you have to do is pick the highest possible rental rate you can think of and then start advertising your property. If no one bites, then you lower the price and continue to do so until you garner interest in the property.
It may sound like this would be a legitimate way to determine the proper rental rate for your property, but it fails to take a number of factors into consideration. What’s more, it doesn’t actually help you find the appropriate rate; it just helps you find the rate that some people might be willing to pay at a particular moment in time.
Work a little harder and you’ll find a rate that sounds good to renters, but also helps you get the most out of your property.
What to Consider
Here are some of the factors that should go into determining your rental rate:
- Property tax rates
- Maintenance costs
- Insurance costs
- Rates other landlords are charging for similar properties
- Various laws and municipal codes regarding rental properties
There’s a lot to keep in mind — much more than what’s on this list — but it’s necessary to factor in everything if you want to charge the right rate!
Let Bridgepoint Property Management Help!
If you have a Charleston area rental property and you’re eager to determine the right rental rate, we can help! Call (843) 800-6005 and find out how Bridgepoint Property Management can help you get the most out of your property.