Boise Idaho Property Management on Setting the Right Rent

 

As a landlord, determining the amount of rent to charge your tenants is perhaps the most important responsibility you have. If you set the rent low, you will have an easier time attracting tenants. However, you will be throwing away thousands of dollars per year, so you might not make enough money to cover your expenses, which of course, is an unsustainable business model. On the other hand, if you set the rent too high, you may have a difficult time attracting tenants, and a vacant rental gives you no income. The challenge is to set the highest rent you can while attracting a sufficient number of tenants. Boise property management companies have some advice for finding this sweet spot:

 

  • Research similar properties in your area: Location matters. A 1,500-square-foot, three-bedroom home will command a higher rent in a quiet area than it will if it is near an industrial zone, so focus on properties close to your rental. Look on Craigslist to see what other landlords are charging, or join a landlord association and talk to them yourself.
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  • Charge more for special features: Once you have a general idea of what rents are being charged, figure out what makes your property special. New appliances, hardwood floors, beautiful views, swimming pools, or extra storage space are some of the features that can justify rents that are higher than average.
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  • Start with a high amount: Just like in any negotiation, you should start with a higher amount than the lowest amount that would satisfy you. If someone accepts it, great! If few people are showing up, then you can lower your rent to attract more tenants.

 

For more information about the rents commonly charged in your area, please contact Boise Idaho property management today.

 

   

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