Did you know that the average American pays $1,326 per month in rent?
Considering how much rent has gone up since the pandemic, you may be looking at this as a great time to invest in real estate. However, the problem you may be facing is that you do not know what a fair rental price is for your area.
How do you determine that for rental property? How do you know that you are not getting ripped off?
Here is your guide.
Research Your Market
The first thing that you should do is research your local market. While the national average for rent is good to know, the local rate can vary significantly if you are in a location with enough demand.
Let's use Tampa Bay as an example. Here, the average rent is nearly $2,200 per month. So, if you were to go by the national average, you would be losing a lot of money in rent.
However, you also have to take a few other things about your property into account. These things include how many bedrooms and bathrooms it has, how many square feet it is, and how old the building is.
All of those factors above can justify you charging a higher or lower price for rent. Research what similar apartments and houses in your neighborhood charge keeping these factors in mind.
Consider the Season
The next thing that you need to keep in mind is the season that you are having someone sign a rental agreement. The truth here is that some seasons are going to demand higher rent than others.
Let's go back to Tampa Bay here. When it comes to this city, it is more likely that the demand for an apartment is going to be higher in the winter.
Why is this? Because that is when a lot of people from the northern states want to visit Florida. People that are looking to escape the winter may be willing to pay more than the average rent.
In contrast to this, Tampa Bay may not be the best place to try to rent in September or October.
Why is this? Because this is when hurricane season is. That means that there is more likely to be rain and a chance that you may have to evacuate the area. Hurricane Ian which hit Florida just recently is an example of this.
The point is that you need to keep these things in mind to maximize your rental opportunities.
Buy Your Rental Property
These are just two of the things that you should keep in mind if you are thinking about buying rental property. You need to factor in what season you are trying to rent to people and you need to do your homework on the local rental market.
If you do those two things, you should have a much better idea of what to charge in rent.
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