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.