How do you as a Landlord set the rent on your property?

For those of us in this group who are property owners and or Landlords, how do you go about setting the rent on your property? Do you visit a Real Estate firm to have a rental valuation done? Please share your procedures, thanks!

 

I do go through the process of having an appraisal. I also keep a very close watch on property values and rent prices in the area. I run the numbers and come up with a competitive rate for my rentals. It has served me well so far.

 

I did get a few rental valuations done, although I had a price in mind beforehand based upon other similar properties in the area. I basically just did the rental valuation to assure me that the price I had in mind was suitable, more as a second opinion rather than anything else.

 

Similar to what jason does, i just found out i was under pricing my rent value and i felt like i could scream, anyway i was hanging out with the wrong crowd hence the valuation advice was negative-minded...whilst all around my property people are smiling all the way to the bank, gladly, that has changed for the best

 

Lol, I'm so happy about that Diane, sometimes you cannot depend on those closest to you to give you good advice, you have to get up, go out in the business world and seek professional advice.

 

Nowadays with the internet it's very easy to see what other people are asking for in the same neighbourhood in a similar apartment/house. Your rates need to be competitive with the rest of the market so you don't have any empty months.. those really cut down on your profits.

Also simply by putting it up for rent at a certain price, the amount of interested people that contact you will give you a pretty good idea of how the rental price is.

 

It would depend entirely on the location of the property you are renting out. If it is in an area where there many other rental properties, you'll need to find out what the other landlords are charging and set your rent appropriately. You'd also have to consider what people in the area earn on average. Should the rent be more than they can afford [to pay] then you won't get a tenant.

 

...you'll never imagine this, but the same people who gave me the wrong advice are now up in arms that my rent value is too far-fetched...lucky for me, i had the facts and they had no choice but to shut up... ...in the category of small minds there they go as i wave .

 

You can go the route of getting appraisals done, but that often costs some money. It's easy to just do the research yourself on the local area. Figure out what other people are charging for rent and what they're offering at that price. Then look at what your property has to offer and where it beats the other rental properties. Then you can simply create a competitive rent rate that's higher or lower than average depending upon the location and accommodations of your own property.

 

I would not want to receive advice from those who are my relatives since family and friends can be dishonest. I just stay away from asking family about rent for property and ask a expert who knows the market.