Not sure how much to charge for a rental property?
The number chosen is an important one — it’ll determine how easy it is to find tenants and keep tenants.
The price needs to be competitive.
It also needs to cover all of the costs associated with the property.
At Hammock Properties, we’ve been renting out houses in Tampa Bay for several years. And we thought we’d take a moment to share some of the most important factors to consider when setting a rental price.
Competition — What does the competition look like? What are houses like yours renting for? Keep in mind the current condition of your kitchen, bathrooms, and flooring. Nicer finishes lead to higher rent.
The 1% Guideline — The 1% guideline states that a rental’s monthly rate should be about 1% of the value of the property. So a $100,000 home would rent for $1,000 per month and a $250,000 home would rent for $2,500 per month. But this is just a guideline… not a hard and fast rule.
Location — Is the rental in a highly desirable area? How much demand is there for this particular type of property? More demand means a higher rental price.
Amenities — What amenities does your property have that add to its value? A pool? Parks nearby? A good school across the street? Anything else? Make sure to mention amenities in the marketing!
Hope that helps!
If you’ve thought of selling your Tampa house instead of renting, give us a call at (813)324-3131. We buy properties as is for a fair price. When you work with Hammock, you get to relax while we do the work!.