Finding the Perfect Rental Price for Your
Long Term Rental Property
Long-term rental properties are a great source of steady, passive supplemental income. Whether you already own a rental property in Coastal, NC, are considering investing in one, or even converting your current residence into a rental, setting your monthly rental rate is one of the first major decisions you will need to make.
You might exclude potential tenants if you charge too much, resulting in longer vacancy periods. On the other hand, if you charge too little, you might be losing out on potential revenue.
When determining rent prices, there are many important factors to consider to ensure you are maintaining a competitive edge without compromising your earning potential.
Important Factors to Consider
Here are a few key factors to consider when deciding on a rental price that accurately reflects your property’s value and targets ideal tenants:
You’ve heard it before, “Location, location, location…” and for a good reason, too. The area your property is in can tell you important details, like the cost of living, average income, and the number of competing rental properties.
It’s also helpful to consider what’s near your property. Does your property offer easy access to shopping, movie theaters, schools, or public transportation? Neighborhood safety, and proximity to popular sites or destinations is also important to note. These are all selling points that can affect how much renters are willing to pay.
Another major consideration are the amenities available in and around your property. For example, does your property offer a washer and dryer in the home? Does your rental include dedicated parking? Is there a swimming pool on-site? Amenities like these can be a major draw for renters who are willing to spend a bit more to ensure they have access to them.
In addition, potential tenants might have amenities they are not willing to live without such as a fenced backyard or a home security system. Therefore, it might be worth considering the costs of upgrading your property to include more popular features. This can also add significant overall value to your property and help you maintain a competitive edge.
Getting a good idea of rental costs in your area will help provide a baseline and give you a clearer understanding of where your property should fit in terms of comparative cost. When scoping out the competition, make sure to look at properties that are similar to yours. Size, age, amenities, appliances, furnishings, and location can all influence rental prices.
Check out our blog What’s Hot and What’s Not in the Wilmington, North Carolina Real Estate Market to better understand current trends in our area.
Take the Next Steps
There are many things to consider when determining rental costs for a long-term rental property. As a leading full-service property management company, Sea Scape Properties is here to help you better understand each of these factors. We are also happy to explain how they impact local rental prices in Wilmington, North Carolina, and the surrounding areas.
Determining the perfect rental price for your property can be a difficult task, but Sea Scape Properties’ rental analysis tool can help you through the process. Our team has a wealth of expertise and local area knowledge that can directly benefit you.