The Desirability of Your Property
If you have multiple properties, it is easy to set one rent for similar properties. However, this will cause you more harm than good. You should set rent based on how desirable the property is. For instance, if you have two properties with two bedrooms each and one has additional storage space, it becomes more desirable. Hence, the one with extra storage should have a higher rent compared to the other one, since many people want adequate storage in their homes.
Some people do not though. Some people do not have that much stuff. Some people do not carry a lot of baggage and extra stuff around. They may want a lower rent for this very reason.
You can gauge the desirability of your property by taking into consideration the view from the property, upgrades that you have done, the size of the bedrooms, extra closets, window and/or balcony and floor level.
Rent Fixed by Your Competition
Check similar properties in the neighborhood and find out the rental of these properties. If possible, check out properties that are similar to yours and see what they offer that you don’t. This will give you a fair idea what to include in your property and the rent to charge.
What is the Market Demand?
Fixing the rent is not a one-time affair. You have to keep a close watch on the market to check the supply and demand. If the economy is faring poorly, people will not be able to afford their homes. This will cause the demand for rental properties to go up and in turn the rents will go up. Higher the demand, higher the rent. And, when the demand goes down, you will need to reduce the rent to ensure you don’t have to deal with a vacant rental property (certainly for not too long).
It is prudent to remember the right rent will attract tenants. If you don’t want the hassle to fix the right rent and then ensure you get the right tenants, collaborate with a salient property management company. Such a company has a wealth of knowledge and experience to set the rent based on market dynamics and ensure you still earn a profit at the end of it all. There is no doubt determining the right rent is tricky and it is best left to professionals who know the business inside out.