If you are renting a home or apartment to a resident, you want to make sure that you charge a fair rent, yet you also want to ensure you’re going to make some money. As you set the rental rates, here are a few tips to keep in mind.  

Tip #1 – Research Local Rental Prices

Before you decide on how much rent you should charge, take the time to research local rental prices. You need the rent to be similar to comparable rentals in your area. You will have a tough time finding good residents if your rent is too high. Make sure you specifically look at rentals that have similar features. You can charge more if you have extra features and amenities. As you compare rental prices and research local rates, make sure that you look at rental properties that are similar to yours in condition, type, and size for the best comparisons.

Tip #2 – Consider Operating Expenses

Next, you need to consider the operating expenses you have to pay, which is the money it costs you to keep the property maintained each month. These expenses include mortgage payments, utilities, property taxes, and anything you pay for property management. Do not forget to consider the potential costs of replacements or repairs to the rental. You need to make sure that the rent you charge will cover your operating expenses.

Tip #3 – Build in a Profit

It is not enough to simply cover your operating expenses – you also want to build in a profit when determining the rent you plan to charge. Set the rent as high as possible to cover costs and turn a profit while making sure the rent stays in line with other rental properties within your area.

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