Most of the home owners are unsure when it comes to set a rent amount. Charging it too high will risk on losing a large pool of potential tenants. Charge too less and you may wind up with an investment property which doesn’t give you enough returns. Take into account these things while setting the right lease amount for your investment property.
The best idea would be to check what your neighborhood is offering. But, that alone won’t help you in judging the right price. For example, two properties located in same area will have different prices. One is located near the noisy side of the street may have lesser rent, while the property in the quite location may be comparatively higher.
Other considerations are the number of rooms, whether the setting is an apartment or a villa. What facilities are coming along with the investment property, like a gym, swimming pool, parking, etc.? Major factor that influences your rent price is the condition of your property. Before you set the rent, you need to know how much money you will spend on that property, which includes the mortgage amount, taxes, maintenance and repairs, etc. Based on these considerations, you need to charge an amount that is higher, otherwise you will end up in a negative cash flow.
Don’t put the rent price too high, you won’t be able to attract tenants and that property will remain vacant for a long time. Set a rent that is considerable and your investment property get occupied as soon as one tenant leaves.
Finally, if you want to get rid of these puzzles, then it is good to hire a real estate broker who will help you from deciding on the rent to leasing out your property.
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