As a rental property owner, one of the most important decisions to make is how much you will charge for rent. You should ensure that the price you set will enable you to make a profit. However, you should avoid charging rent prices that are too high as it could make you end up with long vacancies.
When determining how much you will charge for rent, there are many factors to base your rent price on. Don’t consider only one factor such as how much other rental properties in the neighborhood are charging. So, what are the factors to consider when determining rent prices for your rental property in Columbus Ohio?
Competing Rent Prices in the Area
Finding out about the rent prices in the neighborhood to help you set ideal rent prices for your property. Ensure that you compare apples to apples so that you can get a rough idea of the rent prices charged by other landlords in the area. Doing so will help you set a rent price that is both fair and competitive.
Once you have found out about the competing rent prices in the area, the next thing to consider is how your rental home is different from other rental homes in the neighborhood. How attractive is your property? Does it have more space? Does it offer a better view than other rental homes?
These are important questions you need to ask yourself to set a firm price. If you realize that your rental home is better or worse than similar rental homes in the neighborhood, then it may be good to consider adjusting your rental price accordingly.
Amenities and Utilities
It is a good idea to consider how you will be charging for amenities and utilities to set a good rent price for your rental property in Columbus Ohio. If you will be paying for some utility bills, you will have to factor in utility costs into the rent price meaning that you will have to charge your tenants more. You should also consider things such as parking options, onsite laundry machines and so on to set a firm price.
Your Monthly Costs
This is one of the most important factors to consider when determining your rent price. How much are you going to pay for insurance, mortgage, and property taxes every month? What about unplanned expenses such as emergency repairs and infrequent expenses such as property management? Asking yourself all these questions will help you generate a positive cash flow.