How Much Should I Charge for My Rental Property?
So you’ve put all the time, hard work, and effort into the painstaking process of remodeling your rental property and it’s finally read for rent. Congratulations, now is a great time to start leasing out a rental property in Denver! Now, the next step is to determine how much you can charge for your rental property before putting it on the market.
Whether you’re renting out a duplex or triplex in Capitol Hill or Wash Park or a single family home in Arvada, Parker, or another Denver suburb, determining how much to charge for your rental property is paramount for your success as a landlord.
You don’t want to set your rental cost so high that your unit remains empty because you’ve got to be able to pay your mortgage. On the other hand, pricing your property too low can also create complications because you could go upside down on your investment. Furthermore, you need funds available to be able to pay for unexpected costs like emergency maintenance issues.
How Much Do I Charge for Rent?
When trying to figure out what to charge for the cost of a rental property, there are a few rules of thumb you can go by. However, it’s also important to take into consideration the condition of your property and what the competition looks like in your area.
The first step that you should take is to determine the value of your property. Once you know how much your property is worth, it will be easier for you to determine how much you can charge for rent and make adjustments based on competitors in your area. Most landlords charge between 08.% and 1.1% of a home’s value.
Next, you may want to take a look at what other rental properties are going for in your neighborhood. This can give you a good idea of the competitive landscape. The price of a rental property can vary throughout a city based on its location and proximity to schools, grocery stores, parks, etc. Or, in Denver’s case, properties closer to the mountains are often priced higher.
The final step you should take is to consider additional factors like amenities and time of year. Rental rates are generally higher during the summer since this is when most people move. Furthermore, amenities like a pool or fitness center in the community could make the property more desirable.
Obtain a Free Rental Valuation
If you’re not sure how much to charge for your rental property, you could always consult an expert for a rental valuation. At Peaks to Plains, we offer free rental valuations for landlords in the Denver area. Call us today or complete the form on our website to get started.