How to know What is the Correct Rent, for your Property

Most house owners find it hard to create the right balance between the price of their property and the rental income it can draw. Keeping the rent too high will reduce potential takers. At the same time, quoting a price that is too low may cause losses. Therefore, it is extremely important to price the property correctly, for attracting tenants.

Factors that affect pricing of the property:

1. Property size: the rent of the property will be higher depending upon how big it is. Larger the size, greater the rent.

2. Layout: A same-sized apartment but with more rooms will draw a better rent than a single room apartment. This is because the former layout will offer more independence.

3. Amenities: A same-sized apartment but with a gated community, car parking, clubhouse, swimming pool, will fetch a better rent, in comparison to an apartment that does not have such amenities.

4. Internal facilities and fixtures: A house that boasts of a modern kitchen, wall cupboards, appliances, storage space, will normally get a better rent.

5. Property location: The area where the house is located, its closeness to hospitals, schools, market, etc., and closeness to public transport facilities can play a huge role in defining the rent. Also, the competition in that area for rental properties and the demand will also affect the amount fetched.

Getting the right rental income:

Here are a few strategies that help to boost your income:

1. Furnish the house. A few extra dollars on the interiors of the house, can deliver a higher rent.

2. Invest in houses with at least three bedrooms. This will help open the option of renting to students, thereby, helping get better returns.

3. Choose housing societies that are well-maintained with some amenities.

4. Hire reliable property managers who can ensure that your property does not remain vacant for too long.

5. Ask for the right amount to ensure that your house is never vacant. A competitively priced house will ensure continuous revenue. Also, study the market occasionally. Times when the demand looks high, charge higher. When you see the demand sloping downwards, reduce the rent for attracting tenants.

Other factors affecting rental price:

1. Supply and demand within the micro-market.
2. Capital value and location of the asset.
3. Prices in the market.
4. Type of people living in the area.

If you keep all the factors in mind when deciding on a rental amount, you can rest assured that you will always have tenants interested in your property. However, it is still a good idea to leave the job to property management services. They can not only help you find the right candidates but will also look after their needs as well as yours. Also, in case a tenant turns out to be a nuisance, they also offer eviction management and can help clear out the space without any hassle.  This facility is very important for property owners.