Growing your wealth through a rental property is one of the oldest real estate tricks in the book. But to succeed, you have to know how to price your rental to get the maximum return on investment and grow that passive income stream. Here are 3 things to consider while pricing your rental:
1. The Real Estate Market: Knowing your local real estate market is the most important thing when it comes to pricing your rental property. Your rental’s pricing will be based on the supply and demand in your market and how your competition is priced. Working with a real estate agent is a good idea here because they have all the stats and market information you need to set the right price!
2. Your Property’s Appearance: Everyone wants to live in a nice-looking place, and most tenants are willing to pay more to live in a rental that feels and looks good. The great news here is that you have control over how your property appears. If you can increase your property’s attractiveness, you’ll appeal to higher paying tenants. Make your property look nice by repainting and updating the finishes. Other upgrades like higher-end appliances can also help you attract tenants who are willing to pay more.
3. The Season: Timing your listing right can help you rent your property out for more. Typically, demand for rentals is highest in the warmer months of spring and summer. When the weather cools down in the fall and winter, people tend to stay in their current rentals. When demand is higher and there’s more competition among renters, so you can list your property for a higher monthly rent price.
When you understand the market, how to improve your property’s appearance, and know the best season to list in, you’ll be able to price your property in a way that allows you to make a maximum return on investment. This will help you grow your financial success by increasing your passive income.
Want to talk more about rental properties and how to rent out the right way in our local market?