So you’re thinking about renting out your house but you’re wondering, how much should I charge for rent? Here are some things to think about when considering turning your home into an investment property.
What will it cost to make my home, ‘Rent Ready?’
Have you considered that before you rent out your home, you might have to do a considerable amount of work to make it ‘rent-ready.’ If you’ve lived in your house, you might be willing to put up with those drafty windows or the kitchen laminate coming up, but your prospective renters might not be so forgiving. Before you consider renting out your house, assess the condition of your home, inside and out, and make a list of repairs that are needed in order to get your home ready for renters. You may find that the anticipated cost for repairs exceeds your budget and may not be feasible as a rental.
Factors that affect how much you should charge for rent
Location is an important factor knowing the value of your rental property and in deciding what to charge for rent. While a, ‘good location,’ means different things for different people, if your house is centrally located or located in a good neighborhood, this is huge. As we already pointed out, the condition of your rental factors highly in what you should charge for rent. Check comps in your neighborhood to find out what other home owners are charging for rents in similarly styled homes of comparable size.
It’s not all about you. Consider the needs of renters when setting how much you charge for rent
According to Zillow Group Consumer Housing Trends Report 2018, renters have wants and needs that can factor into the value of your rental property. According to the report, safety is most important for renters, as well as walkable neighborhoods, close proximity to shopping and leisure activities, and access to public transportation. Other items, like amenities or access to nearby amenities, while often less important to renters, can allow you as the landlord to charge more for rent.
Have your considered hiring a professional property management company?
Hiring a property management company can help you evaluate the worth of your rental property so you have peace of mind. A reputable company will save you time, stress and money. Such a company will do everything from market your property to collect the rent. They’ll even negotiate rental contracts for you, collect the money and deposit it into your account. They are up to speed on current market rental costs and will suggest appropriate rent rates to you based on market knowledge and comparable rents in the area. Further, they can weed out bad renters by handling all the applications and the credit and background checks.
Professional property management companies stay up on maintenance, keeping your property in good shape, making recommendations on needed repairs and scheduling regular maintenance. They are usually well connected and can make recommendations on service repair companies, often saving you money from their connections. Property management companies will keep your financial records by tracking income and expenses and they will report on your profitability and make recommendations that save you money. Most importantly, property management companies are well versed on landlord/ tenant laws and local, state and federal regulations which keep you out of hot water as a landlord. Finally, a property management company will respond to tenant requests, deal with problem tenants, and if it comes to it, handle evictions.
Performance Property Management provides exceptional property management services
Performance Property Management provides exceptional property management services in the Denver market and has expertise in pricing rental properties. We have previously blogged advice on what to charge for your rental property.