Are You Charging Too Much For Your Rental Properties?

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Have you ever sat back and wondered if you are charging the right rental prices for your property investment? Youre not the only one.

Without doing a house by house survey you cannot get an accurate image on how much other rental properties in your area are going for? And if we are honest, competing landlords are not likely to tell you the truth. You are their competition after all.

So what do you do?

Well, it is no good guessing. Put it too high and youll receive no queries, but set it too low and the interest youll be attracting will not be of the right kind. Theyll be calling you because you are cheap.

The best starting tip we can recommend is looking in your local Sunday paper and assessing what the average rental prices are for your property.

Now you need to be specific with this. You cannot look at all 3 bedroom semi-detaches as their location alone will have a big impact on their rental prices.

Take this scenario for example.

You have got two identical properties, in two different areas. One in London and one in Manchester. Now although these properties are visually the same, their rental prices wont be. In most cases there will be an easy 200 a month difference. A difference that could equate to 2,400 a year.

But that is not all.

Every city/location has got different rental areas. A property that is situated closer to the city centre for example will rent differently to one that is positioned on the outskirts.

Why? Simple. Because of demand.

You see, most people have preferences over where they want to live, so when it comes to renting they want a rental property that will work to suit their needs.

In most cases, people choose to live close to their jobs, their families, their childrens schools or near a trendy location. Saying this you will find older renters who prefer to live where they will have easy access to shops, hospitals and ports of transport.

It is all about preferences, and location, location, location.

So if you are looking to ensure that you charge the right amount on your rental properties, firstly start dissecting the classifieds in your local newspaper and then expand your search from there.

Two other useful sources you can use are going to the areas local estate agents or looking on the internet. By utilising these tools you can gain a stronger sense over whether or not you are charging the right rent.

About the Author:
Isabelle Newton is a professional copywriter for over 8 years specialising in the field of property investment. She is currently working in conjunction with property investment seminars to provide landlord resources to educate investors on how to make money from property investment.



Article Originally Published On: http://www.articlesnatch.com


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