The Real Estate Investing Authority®

How Much Can I Charge For Rent? How to Value Your Rental Property.

Learn How Much You Can Rent Your Property For!

 

I remember buying baseball and basketball cards as a child. It was exciting to open a random pack and see if you were lucky enough to score a rare card.  Then you could race down to the local store that sold collectables like comics and sports cards but most importantly they sold the price guide. The price guide came out every month and it was exciting to see if a card you had went up in value each time. Thinking back on it now it seems like an improper introduction to gambling and the market speculation for a child.  Unfortunately, there are no price guides to refer to each month to know what the rent should be. 

 

Preliminary calculations

 

New landlords with one property often say “well my mortgage is ….. and my taxes are…. and .. and…… so I need to charge $xxx for rent.  If you are a new landlord thinking about rent rates, you can get all those numbers together, write down the amount for each, add it up and then………. Throw it away!  Your expenses have exactly zero to do with what your property is worth as a rental. Now that we are throwing things away we can go back and throw away those sports card and comic book price guides also.  I don’t know about you but I remember it was near impossible to actually cash in your cards or comics for the price listed in those guides.  The reason for this is that you can never get the real value of something in a book, a guide or on a website.  The only way to actually know what something is worth is to sell it.  Those old baseball cards just like your rental property are worth EXACTLY and ONLY what someone is willing to pay you for them at this very moment. 

 

Value you provide

 

It is helpful to think about value in a specific moment so you can make an effort to receive the maximum value.  You are looking to achieve the highest rent at the same time potential tenants are looking to obtain the best property for the lowest price.  This means you are competing with all the other available properties at the time you have a vacancy, so you want to take steps to provide a better value than most of the market when you are searching for a tenant.  Is it hard to find a place that allows pets in your area? You may want to allow animals to widen your potential tenant pool.  Do you provide laundry? Utilities, parking etc?   Think of providing novelty amenities that don’t require large expenses. Maybe you have smart light switches or accent lighting, stainless appliances.  If you want a higher rent than most other landlords your property needs to be perceived as better than most by your customers, tenants.

 

Value you receive

 

We stated before that the only way to know the value of your property is to rent it but there is a way to narrow in on the likely range.  If you advertise effectively you will know based upon the number of inquiries to you get.  We suggest reviewing your competition and finding a range of advertised prices for similar properties then you can list yours at the top of the range. If there are no inquiries over a few days or a weekend you now know that you are too high and you can lower it quickly until the phone starts ringing.  This strategy gives you a chance at top dollar but adjusts quickly to fill the unit and minimize the duration of your vacancy.  A good property manager will give you comparable properties that they have rented recently and tips to capture the highest possible rent in the shortest amount of time. 

 

Nick D'Agnillo is the CEO & Founder of Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

 

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Nexus Feedback

Writing this review in recognition regarding Rhode Island BEST/TOP Property Management Company NEXUS, look nowhere else. I am impressed with the friendliness and professionalism of the staff, especially Gregory J. Rice. Greg, always answered any questions and extremely knowledgeable of the rental business as well as personable. From an investor stand point, I apprentice knowing the person managing my property, also has rentals, they UNDERSTAND OWNERS, & TENANTS. NEXUS online portal is a great way for owners and tenants to communicate. Between the management and technicians they always get the job done right the FIRST TIME! NEXUS UNDERSTANDS REAL ESTATE, NEXUS IS REAL ESTATE!

15 Jun 2020

Nexus Property Management is one of the best management companies we have had the pleasure of doing evictions for. We are RI State Constable Service one of the biggest constable services in RI and we highly recommend you let them manage your property. They do an excellent job and we are happy to be associated with them going on close to 4 years now. Most management companies try to tell us how to do our job this is one of a very few companies that understand we all have a job to do and we know they are experts in theirs and they respect our instructions from the court and usually with them evictions flow easily as they set the ground work properly and protect the landlords quickly and move fast to get your property rented. They return calls, texts, and emails quickly and respond even when most companies would not. They also have e-payments set up with their vendors and their tenants which makes it easy to get paid for you and for us. We have met most of the staff of the company and they are all very respectful and professional and care about your needs as a landlord. If you would require further reference please contact us and we would be happy to answer any questions. We have over 100 landlords/management companies that we provide our service for and they are among the TOP Mike and Deb Clemente RI State Constable Service

23 Nov 2015

They “manage” an apartment building on my street and do a very poor job. Grass a foot tall and bushes are so overgrown the sidewalk is impassible

03 Aug 2020
Response from the owner:

Hello Mason, feel free to reach out to us directly to let us know which property you are speaking of. We do not have any record of any tenant or owner in our system with your name. Thank you