The Reluctant Landlord

  • Home
  • About Us
  • Archive
  • Work with Me!
    • Guest Post
  • Contact
  • Disclaimer
  • Self Management
  • Military & Real Estate
  • Buying & Selling
  • Property Manager
  • Our Strategy
  • Books
You are here: Home / I am a Reluctant Landlord / 8 Tips to Establishing Rental Price

8 Tips to Establishing Rental Price

September 8, 2014 by Elizabeth Bennett Colegrove 4 Comments

This post may contain affiliate links.

8 Tips to Establishing Rental Price

8 Tips to Establishing Rental Price

  1. Establish the Number of Houses Available – Look on Zillow, Craigslist, and Trulia to see what other house are currently available.
  2. # of Houses Available to Rent – Look at all the houses available, the highest for rent and the lowest.
  3. Determine your Comps (Comparables) – Look at houses with similar numbers of bedrooms, bathrooms, and square footage. It is important to note that single family houses versus townhouses often rent at different rates.
  4. School Districts – Make sure you are comparing the same school districts. Districts with different ratings will affect the rental value.
  5. Location – Houses on busy streets, near railroad tracks, around apartment complexes, etc., reduce rental values so take that into consideration too.
  6. Days on Market – If a house is listed for rent at a higher value than the others and has been on the market for a long time I would consider it an outlier.
  7. Time of Year – If it is off season it can take longer and rates can be lower. You should always compare your rental price to others before you set it.
  8. Desperation – How quickly do you need to rent the house? You are better off renting it $50-$100 under market than letting it sit empty for a month. If I have lots of time (1-2 months) I try the higher end of the market, if I have little time (less than a month) I usually aim below or at market.

Most Important Take Away:

Your house sitting empty is your biggest enemy against your bank account. You are better off under-pricing your house “slightly” and having it filled immediately than letting it sit empty! In my experience, if you are not getting showings or are having lots of showings with no interest, you are priced too high.

0

Filed Under: I am a Reluctant Landlord, I am a Small Time Landlord, I am an Empire Builder, Self Management

Comments

  1. Nathan Garrett says

    October 9, 2014 at 9:52 am

    Great blog and some great tips here for determining market rents! We should be careful with how we define “comps”. Comparables can only be derived from information about completed sales or leases. Often times the “asking rent” will differ from the “contract rent” so that is important information to have.

    I have enjoyed reading your posts!

    Sincerely,

    Nathan Garrett
    Home Finders Leasing and Management, Inc.

    Reply
    • escolegrove@hotmail.com says

      October 10, 2014 at 12:48 am

      Nathan,

      Thank you for the awesome feedback and comments.

      Elizabeth

      Reply
  2. Gary Ward says

    October 4, 2016 at 6:15 am

    f landlords follow all of those tips, I’m sure they will set a right price for vacancy.
    To check rentals on websites, such as Craigslist, Zilow, Trulia is one of the the best ways to find what the going rate for any rental in any area. I would like to add Rentberry to this list. It’s also a property rental website which shows the initial price for vacancy as well as one at which property was rented. So, such service can be helpful when a landlord sets up a rental price.

    Reply
    • Elizabeth Bennett Colegrove says

      October 4, 2016 at 11:41 pm

      Gary,

      Thanks for the tips about Rentberry. I haven’t heard of that rental website yet. I will have to check it out!

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

I love my family, my country and real estate. My goal is to retire early through frugal living and real estate investment. I am making great strides and want to share the information I've learned through the process. Read More...

CHECK OUT MY BOOK!

Sign up for the Newsletter
JOIN HUNDREDS OF OTHERS IN RECEIVING OUR FREE WEEKLY UPDATES STRAIGHT TO YOUR EMAIL INBOX!

Most Popular Posts:

  • How to Create Freezer Meals for One Person
  • 3 Ways a Landlord Can Split the Utilities
  • How to Set Up Your Rental Accounts
  • The Solution to a Broken Lease: The Buy-Out Clause
  • What are a Military Widow’s Death Benefits?
  • How to Get Rid of Cat Urine in Cushions, Carpet and Clothes
  • How to Write an Incredible Lease
  • How to Write a One Page Lease Renewal!
  • Is it Worth Buying a House if You Move Every Two Years?
  • Landlords: Should You Include a Washer and Dryer in Your Rental?

GET THE BUTTON


More Posts from this Category

Search

Categories

Archives

Copyright 2023, The Reluctant Landlord. All Rights Reserved. Custom design by Pixel Me Designs
Sign up for the Newsletter
JOIN HUNDREDS OF OTHERS IN RECEIVING OUR FREE WEEKLY UPDATES STRAIGHT TO YOUR EMAIL INBOX!
[close]
Brought to you by
Displet