You’re a landlord who’s looking to rent out your space. Everything is set up and ready, but you need to settle on a price. How much should you charge? That’s a tough question, one that will vary depending on several factors. So, what are some of the factors that dictate price point? Here’s a list of the things you need to consider as you work through this process.
- Square footage. This is a no-brainer. If you’re offering plenty of space, especially compared to similar local rental properties, the tenants will have a higher rental fee. Additional bedrooms and bathrooms are a dealbreaker for many prospective clients, so people will likely be willing to pay more for the extra space.
- Storage. Storage is especially important for those who want a long-term rental. An abundance of closets, shelves, and cabinets will add value to the space. Otherwise, tenants will have to rent an additional storage facility from a third party, making them less likely to pay a premium for your space. If, on the other hand, you have plenty of available storage options, be sure to highlight the advantages and factor that into your asking price.
- Amenities and appliances. Many rentals include access to appliances and special amenities. Are the refrigerator, stovetop, and oven sufficient in serving their purposes? Have they been recently upgraded with new and noteworthy features? Does the space have efficient heating and air conditioning? Do tenants have access to a pool or any other recreational facilities? Consider these questions and carefully weigh your answers as you determine an appropriate price point.
- Location. The most expensive rental properties are typically central to a major city or town, close to shopping and entertainment. The further one has to drive to get from the rental to their preferred activities, the less they will be willing to pay. Of course, a different tenant might enjoy the solitude of being removed from the hustle and bustle of city life. You can accentuate the positives in almost any area, as long as it is clean and safe. Try marketing your location differently to attract different clients.
- Cleanliness and maintenance. This was discussed briefly in the previous point, but a welcoming and well-maintained property will always dictate a higher rental fee. Put some effort into making the place look clean and attractive. As a landlord, it’s largely your responsibility to ensure the tenants are satisfied with the accommodations. Often, this includes looking after utilities and performing regular maintenance checks.
- Parking. Whether long-term or short-term, every tenant needs a place to park their car(s) during their stay. An abundance of convenient parking will certainly attract clients, but it’s more likely that the lack of such accommodations will hurt your chances at dictating a higher price. Occasionally this is unavoidable given the location of your property, but do your best to make arrangements and be sure to give potential clients every possible opportunity.