If you are renting or selling a property or buying one to rent it out, the most important question is your listing price.
Market fluctuations will determine your rental price to a great extent. Begin by getting a comparable. This is the rental price that another property of the same size in your neighborhood is available for. This figure gives you the right base to determine your listing. Once you have determined the comparable, look at the condition of the property. If your property is in prime condition, you can raise the listing price, whereas if it is in need of repairs or renovation, it will affect your listing price negatively. If it is a buyer’s market, you can expect even greater volatility in your listing price.
Renters need to consider the following factors:
• The price you paid for the property
• The mortgage payment
Be open to negotiations or flexibility in your price. On one end of the scale, don’t rush things and quote an absurdly low price. On the other, don’t quote a price that resembles the National Debt.
If you live in the same neighborhood as the investment property that you own, you have greater flexibility in listing. You could go ahead and rent it yourself, thereby saving a tidy packet in broker’s fees. If you intend to list the property yourself, it’s easy to do so. Take an ad out in your newspaper detailing your property, and catch the attention of locals by putting up posters. Open houses are a great way to welcome potential renters to your home, while also giving them an opportunity to look over the house themselves. The internet has made it possible for property owners to connect with potential renters. Post ads to classified sites, and always remember to use a flattering picture of your property in your advertisement. Make the time to take a glossy sharp picture that brings out the beauty of the house.
You don’t necessarily have to go through a broker to rent your investment property. With a little patience and planning, it’s easy to do so yourself.