Real Estate Property: Setting the Rental Amount
Many rental real estate property owners find themselves in a quandary regarding the right price to quote as the rental amount. This is certainly true if they are unable to find tenants for a real estate property that has been vacant for a while. Is the quoted price in line with the marketplace, or do the rental rates need to be adjusted so that it becomes more attractive?
If you have quoted a price that is too low, chances are you will find too many potential tenants for your rental property; too high, and there maybe no takers at all. How do you find the best rental rate?
Factors that Affect Rental Property Rates
Factors which might affect rental rates differ from one neighbourhood to the next, such as accessibility to major roads and highways, and the proximity to markets, schools and other conveniences.
Renters may also have individual needs driving their search for rental real estate, which in turn can also affect how much rent to charge. While some prefer might want a place that has a swimming pool, others might just be looking to rent an apartment located in a particular part of the city.
Other factors include job creation, the influx of people moving, rent control (which may limit your ability to charge the going rental market rate), as well as new homes under construction.
Finding the Ideal Rental Amount
The most important step to finding an ideal rental rate is to track the rental real estate market. Take a look at the classified ads in the local newspapers or go to a rental real estate property listings website. Cross check the going rental rates for similar properties in your area.
Whether the rental market is on an upswing or a downswing, your real estate property is bound to be affected. The key is to adjust your property rates accordingly. It is a good idea to keep in touch with the other landlords in your vicinity, or perhaps join a local association for real estate property owners to share rental rate information.
You can always set rent amount a little high - it's easier to lower an amount than to increase it. However, in a city with a high percentage of renters like Montreal, quoting a high rental price doesn’t make sense unless you are really confident that your rental real estate property is conveniently located in a prime part of the city.
If after setting a rental amount, you are not getting any responses, you might want to review the rental marketplace to stay in touch with the latest changes.