Many people in the U.S. are interested in becoming landlords. A Better Homes and Gardens Real Estate survey recently found that 89% of American investors are drawn to the prospect of investing in real estate. The survey also found that 96% of investors who have put money into real estate are convinced that this move contributed to their personal financial growth. Approximately 27% of people in the U.S. made their homes rental properties. The number of rented homes grew impressively from 31.2% to 36.6% of all households between 2006 and 2016. During that same 10-year span, the number of rented homes in which the head of household was under age 35 grew from 57% to 65%.
The Challenges of Being a Landlord: How Much Should You Charge for Rent?
Rental property listings must clearly state the monthly amount that the prospective renters will be expected to pay. Determining the average neighborhood rent is advisable, but time-consuming. You don't want to charge too much for the property and dissuade potentially desirable tenants, but you also don't want to charge too little and cut into your profits.
Tools Designed to Help You Determine A Fair Price for Rent
First-time landlords often set rent prices too low. They are anxious to rent as soon as possible. They may undervalue their properties in rental property listings to attract a greater number of prospective tenants, some of whom may not be desirable. An effective rent estimator tool can help you find the right price, and it can also help you determine how much you want to invest in upgrades.
A batch analysis tool will allow you to examine rents on as many as 100 properties. Someone who is considering new investments might benefit from analyzing the average neighborhood rent on multiple properties. It may also be used as a way to calculate market-rate rent.
Many people are interested in becoming landlords, but they may not be prepared for the job. Being a landlord isn't easy, but the right technology can help point you in the right direction when it comes to setting rent prices. Search online today for rent estimator and batch analysis tools. They'll make your life easier.