Setting the rent on your investment property is one of the more important tasks you’ll face as a landlord. Getting top dollar for your rental is important when it comes to meeting your financial goals. If you set the rent too high, you could go vacant or have high turn over rates. If you set the rental price too low you could loose valuable income.
Many first-time landlords choose to consult with a property manager when it comes to determining how much rent to charge, a professional property manager often has the experience and know how to evaluate a local rental market. Understanding the process of determining a rent roll will save you time and money in the long run.
Here are some important points to remember when setting the rent in your investment property.
Location affects your investment property
The more sought-after the neighborhood is, the higher the price you can charge in your investment property. This leads me to my next question what determines a sought after neighborhood? These locations have a few things in common: a charming or walkable down town; easy access to transportation and employment; shopping centers or nearby malls; some outdoor recreational spots and a nicely maintained neighborhood with good schools.
Size and amenities affect your investment property
The number of bedrooms and bathrooms and rental floor plan will all effect the overall rent roll in your investment property. Having adequate parking and laundry facilities are 2 important features which will directly impact your rent roll. Search the local NJ MLS and find out what homes are renting for in your area. Have a local realtor determine a range for rentals in your town. This is a great starting point for new landlords. Now fine tune this price range by comparing the condition in your rental property with others currently on the market.
Overall condition affects your investment property
Most tenants expect rental units to be well-kept, with reasonably up to date interior finishes. If your rental house features original tiles or kitchen cabinets, you’ll probably need to charge a bit less than the average going rate for a comparable space. On the other side, if your home is full of high end upgrades, you may be able to command a higher than average rent price.
If interested in investment properties in New Jersey let’s get in touch and find out what Northern New Jersey Real Estate has to offer you.
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