How to Determine Rental Rates

Timothy Zielinski on March 31, 2025

How to Determine Rental Rates

Learn how to calculate rental rates for your investment property with this step-by-step guide. Explore market research tips, cost breakdowns, and pricing strategies.

One of the best financial decisions someone can make is to invest in property that they can then rent out to tenants. The acquisition and rehab process can be long, taking months to find the perfect property in the right location and for a reasonable price. After purchasing your property comes the question of, how much should you charge? And here’s how to calculate the rent of your newly acquired property.

Every real estate market in the United States is different and it is important to research the local market. From income levels, average house size, location, and amenities. Online real estate platforms can be an excellent source of information regarding local markets, as well as local real estate agents.

Assessing the features, size, and amenities of your property is another vital step in evaluating how much the rent should be for the newly acquired property. You should consider features such as the size of the home, number of bedrooms, bathrooms, and location. More unique features can also increase the rent, such as a swimming pool. An important element of pricing the rent of a property is its costs to you. You will need to factor in property taxes, maintenance, insurance, mortgage, and property management software costs if you are using a company like Rezedent.

Speaking with local real estate agents and brokers can give you great insight into the local real estate market and what to expect when it comes to rental rates and tenants. You may also consider conducting surveys or speaking with potential tenants to understand what they are willing to pay for similar properties.

Factoring in utilities is another aspect that will need to be taken into account. Some landlords do not pay any utilities in a rental property and leave it to the tenant and how much they use utility services. Others cover the costs of only some of the utilities. It is important to do all of your due diligence before investing in a real estate property and setting the rent before entering the market. By following the right procedures, you will be able to remain competitive in the market, while also having the correct rental rate.

About Rezedent:

The Ultimate Online Platform For DIY Rental Property Management for Small To Mid-Size Landlords. Simplify All Time-Consuming Tasks And Enhance Resident Satisfaction With Modern Tools For Payments, Tenant Screening, Maintenance, Best Of All, Rezedent Offers Affordable Pricing.

The platform is free to use if you have one property and if you have between 2 and 10 units, the price becomes just $10 per month. After the 10 units, the pricing is just $1 more per unit. The services offered by Rezedent are plentiful, online rent payments, tenant screening, expense tracker, reports, and more, all of which are included.

The Top 5 Benefits of DIY Online Rental Payments

Timothy Zielinski on March 31, 2025

The Top 5 Benefits of DIY Online Rental Payments

Historically, tenants paid their rent in one of two ways, either with cash or with a check, but DIY online rental payments technology has changed all of that and made it even better for the millions of tenants who rent around the United States. Here are a few of the ways that DIY online rental payments have improved the quality of life for tenants.

The first and most important aspect of online payments is the convenience aspect. Withdrawing cash from your bank account or writing a check to give to your landlord took some time during an individual’s day. The process now is effortless for tenants when using companies like Rezedent. In the times of old, you had to wait several days for the check to clear or for the landlord to deposit your cash. Now it happens in an instant. Tenants can now just log into their account and pay their rent, taking less than a minute.

The convenience of online payments eliminates the possibility of losing checks and time. Online platforms also have a record-keeping service for each account. With technology, paying rent can be as easy as having the account in autopay mode, with no input from the tenant at all. Online systems allow tenants to make the payment process much more transparent than before. The system shows all of the payments made, along with an itemized bill and records of all payments.

Having an excellent credit score opens many doors to borrowers, from lower interest rates to easier rentals. Paying your rent online and consistently will improve your credit score in the long run. The method has never been more secure and simple than it is today.

For tenants, paying online is incredibly easy. They can log in at any time and submit the payment in less than a minute or they can have autopay enabled, with all payments being itemized and recorded. For landlords, the choice has never been easier, especially with companies like Rezedent. The platform allows tenants to pay them and request maintenance calls without having to constantly deal with calls, freeing up valuable time.