Did you know that one-third of Americans are renters?

Owning property is a smart investment in lots of cases, but there are plenty of reasons why it could make more sense to rent. If you want to make money in this industry, then you should buy a rental property.

One important step that you should never rush is establishing a rent price that's both reasonable and profitable. Keep reading so you can discover our top tips on how to price your rental property.

Do Research for Your Specific Location

A helpful place for you to start your rental price research is to take a look at nearby competitors. How much are other property owners charging for similar units?

The reason why this matters is that renters will hunt for the best deal. If you can't keep up with nearby properties, then you'll lose lots of business.

Factor in the Size of Your Rental Property

The larger your rental property is, the more money you can charge for rent. Whether you have a single-family home or an apartment complex, you should pay attention to the square footage of every unit.

Indoor space is what matters most, but you also shouldn't undervalue your outdoor square footage. Renters would love having a beautiful backyard or common space to soak up some sunshine.

Don't Forget About Property Amenities

One reason why you could get away with charging more than nearby rental properties is having high-quality amenities. Luxury units will attract a different type of renter who is willing to pay premium prices for a better lifestyle.

There's a wide range of amenities that you can add to your rental property, so look into the value of every element.

Take a Look at Your Real Estate Expenses

It's true that rental property owners can run a lucrative business. However, there are many expenses that they have to take care of.

Take some time to add up expenses like taxes, maintenance, a mortgage, and vacancies. This will give you a better idea of how much you'll need to charge to create a profit.

Let a Property Management Company Handle Rental Pricing

Pricing your rental property doesn't have to be a confusing and labor-intensive task. If you hire a property management company, then they can use their tools and knowledge to find the best price for your rental property.

There are so many other benefits you can enjoy when you team up with a property management business as well. It's worth looking into this option so you can see if it's the right move for you.

Now You Know How to Create a Fair Price for Your Rental Agreement

Creating a fair rental property price is crucial for the long-term success of your business. Using the advice in this guide will make it easy to thrive.

Do you want help with rental pricing and other property management services in the Salt Lake City, UT area? Contact us to learn more about our services.