Education and news for smart DIY landlords!
A common question that landlords ask is: "How much can I rent out my property for?"
Properly pricing your rental property can help you maximize the amount of profit you receive regardless of the type of property you rent out. You need to always consider the rental rate you set when your unit comes up for rental and during renewal for the reason that market conditions can change. There are several factors that affect the market.
As a landlord, you have your own goal for your rental property business. The most important thing is that the rental price you set is able to cover all of your out of pocket costs related to the property.
1. How do you figure out the right price for your rental?
2. Where should you check for competing rents nearby?
3. Should you rent out your property furnished or unfurnished?
4. How does rent control work?
Let's talk about the first of these 3 questions. How do you figure out the right price for your rental?
Find out how much your unit actually costs you. Think about all the monthly expenses required to maintain your rental property. Write these monthly expenses down. Add up these expenses. Check the list below as your guide:
Monthly expenses to maintain rental property:
=$__________ in monthly carrying costs for the property
If a unit costs you more per month than you are able to bring in rent, that is fine but always be aware of your cashflow.
After you've totaled all your costs, you can now compare similar rental units in the market. You want to make sure that you get as much as you can for your unit.
For the rest of this lesson, existing Landlord Prep students should log-in to the module entitled Between Tenants - Deciding Rent & Rental Terms (Deciding Rent).
Not a member yet? Join the Landlord Prep: Video E-Course and How-To Tutorials so you can access this section and get the complete DIY landlording course. This will help you stay knowledgeable and confident as a landlord.