How much should I charge for rent? How much should I charge to rent my Baltimore rental apartment? Questions related to setting the right rental price for a rental house or apartment in Baltimore are very common.
The key to being a successful landlord starts with the right rental rates. Setting the right rent for your rental units is not only beneficial for the property but a competitively priced rent also attracts high-quality tenants.
You may get tempted with higher rent for your brand new rental home in Baltimore, but that could lead to long-term property vacancy. The rental price of your property has both positive and negative impacts. You will have to consider everything before you set a higher rental price for your rental unit.
Remember, neither you have to set the rent too high that will lead to long-term property vacancy nor keep it too low, which will not even help you to cover mortgage costs and other expenses.
In this article, you will find tips on how to set the right rental price for your property. Also, you will know what amenities should be included while setting the rental rate and why is it important to charge appropriate rent.
The Importance of Charging Appropriate Rent
We will talk about setting the right rental price but before that, we will discuss why it is important for all landlords or homeowners to determine the appropriate rental price.
It will help you to hire good tenants and get rent on time
The right rental rate helps in attracting potential tenants. Due to higher rent, your property may remain vacant for a longer period. Also, the tenants will be able to pay rent on time. Keep that in mind if you will keep your rent too low you might not be able to hire your ideal tenant. And, if you will keep it too high then you may not be able to find a tenant at all. Consider finding out the average income of the people who reside in the locality.
It helps in covering mortgage costs and other expenses
If your rental income is not helping you to cover the mortgage costs and other carrying costs then it means you are not charging right.
It maximizes your rental profit
It also helps landlords to maximize their rental profit because when they start collecting rent on time they can easily keep 0-6 percent of the rent in their pocket every month.
Now, let’s know how much should you charge for your rental property in Baltimore and what things to consider to determine the right rental price.
How Much Should I Charge for Rent?
We have already discussed above the importance of charging appropriate rent but setting the right rental rate is a complex task. This could be challenging for all the new landlords as there are a lot of factors to consider before deciding the rent for your Baltimore rental units.
Look at the Competition
The first step towards determining the right price for your rental is to look at the competition. Check the as a similar type of property as your in the locality, but for that, you must consider the following things: –
Neighborhood
Search for similar properties in the same town, where your property is located. But more specifically, focus on the same section of the city because prices can vary if a particular area is more desirable than others.
Number of bedrooms and bathrooms
Yes, you will count these as amenities and the rent of a property is determined by considering this important amenity. To know the price, look at the properties that are similar in size to your property.
Multi-family or single-family units
The rental rates of single-family units are comparatively higher than multi-family rental units in Baltimore.
New vs. old constructions
Tenants like to pay a higher rent for rentals in the newly constructed building.
Avoid 2% Rule
Most landlords follow the popular 2% rule when it comes to deciding how much they should charge for rentals. It is said that a rental value of a property should be 2-5% of the total value of the property. But, this rule can be proved faulty because the value of a property increases faster than the monthly rent. So, think wisely and determine the right rental amount.
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Adjust Price According to the Amenities
Indeed the amenities add great value to your property. So, while deciding the rent consider all the amenities your property offers like: –
- View
- Balcony
- Number of rooms and bathrooms
- Floor level
- Parking space
- Security
- Elevator facility
- Fully or partially furnished
- An extra closet or windows
Final Notes
Indeed setting the right rental rate or determining how much you should charge for rent is a crucial step of managing a rental property business. And to avoid late rent payment, property damages, tenants’ complaints, and long-term vacancy, should hire the best property management companies in Baltimore is important. They can also help you to figure out how much you should charge for rent.
