by Liz Boksanski
Whether you own or manage one rental property, or hundreds of rentals across the country, you need to be able to set fair market rents confidently. If your rent is set too high, it can sit on the market and you will miss out on monthly rental income. And if the rent is set lower than the competition, simply put, you will leave money on the table.
As we know, rents vary greatly from market to market, but can even differ from one street to the next within a single neighborhood. Obviously, many variables can impact the rent you can charge for your rental unit including: location, type of building (duplex, apt. building, etc.), size/square feet, amenities (pool, roof deck, etc.), age of unit, # of beds/baths, etc. These variables fall into the “science” of setting rents, - like having access to reliable rent comp data. However, setting rents is also an art form. You need an understanding of the subtle distinctions in a local market (and a little self-restraint) to get it right.
Don’t be fooled that any one rent report, website or data point can tell you the perfect fair market rent. We recommend that you tap into a few resources (a more holistic approach if you will) to help you set rents for your rental property.
5 Ways To Help You Confidently Set Fair Market Rents
Setting rents confidently is as much of an art as it is a science. However, with good current and historical rental data and a thorough understanding of the local market and market conditions, you can set rents with confidence.
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