The number chosen is an important one — it’ll determine how easy it is to find tenants and keep tenants.
The price needs to be competitive.
It also needs to cover all of the costs associated with the property.
At INW Properties, we’ve bought, flipped, and rented out a lot of properties in Eastern Washington and North Idaho over the years. And we thought we’d take a moment to share some of the most important factors to consider when setting a rental price.
Here they are!
Competition — This is the most important thing to understand when determining the rental price of your property: what does the competition look like? If there are nicer homes that cost less, then it’s going to make finding tenants difficult. But if you charge too little, then that might attract low-quality tenants. Understand where a particular property falls along market lines.
The 2% Guideline — The 2% guideline states that a rental’s monthly rate should be about 2% of the value of the property. So a $100,000 home would rent for $2,000 per month and a $250,000 home would rent for $5,000 per month. But this is just a guideline… not a hard and fast rule.
Location — Is the rental in a highly desirable area? Or is it in a less desirable area? How much demand is there for the particular type of property? More demand means a higher rental price.
Amenities — What amenities does your property have that add to its perceived value? A pool? Parks nearby? A good school across the street? Anything else? Make sure to mention amenities in the marketing!
Hope that helps!
If you or someone you know is looking to sell your home as-is for cash, give us a call at 509-828-4270. We can close in as little as two weeks and make you a fair cash offer within just 48 hours!
