Are you considering listing your property for rent? Renting out an investment property can be a great way to earn passive income, but it’s crucial to understand how to price it correctly. Here are some tips and advice to help you maximize your rental income.
Understand Your Market
The best way to determine how much you can rent your property for – is to understand your local rental market. Determine the average rent for similar properties in the area to get an idea of what you can charge. Pay attention to the amenities your property offers and include them in your description to differentiate your rental from others in the area.
Consider Your Expenses
Before you decide on a rental rate, consider the costs associated with renting out the property – such as taxes, insurance, maintenance, and management fees. Understanding your expenses and being realistic about them can help you determine a rate that ensures a profit.
Determine Your Minimum Rent Rate
Once you’ve calculated your expenses, gained a general idea of what other similar properties in the area are renting for, and know your minimum rental rate, you’re ready to list your property.
Consider talking with a rental expert or real estate agent to help you determine the optimal rental rate for your property. You can also consider a property management company to help you list and manage your rental. Luckily, the Livin’ Experts team is an all-in-one solution for your real estate needs!
Establish a Fair and Clear Leasing Policy
Having a transparent and fair leasing policy is essential for setting appropriate boundaries with your tenants, as well as providing yourself with legal protection. Be sure to specify allowable pets, smoking, rules of cleanliness, and other restrictions.
Market Your Property
Now that you’ve determined your rental rate, leasing policy, and expenses, it’s time to market your property. We use our online listing site and social media platforms to reach potential tenants, provide detailed pictures and descriptions of the property, and answer any questions potential tenants might have.
Pre-screen Your Tenants
Remember to vet any potential tenants to ensure they’re responsible and have a reliable source of income to pay their rent. Consider asking for a credit and background check and having a standard application form for interested renters to complete before entering into a leasing agreement.
For most landlords, the goal is to find a reliable tenant who will stay and pay their rent on time. By taking the necessary steps to price your rental correctly, establish a fair leasing policy, market the property, and thoroughly vet any potential tenants, you should be well on your way to earning passive income from your property.