As a landlord, it’s vital to set the right rental fee to avoid financial losses in your Rhode Island investment property. If you’re still paying for a mortgage, then you need to ensure that you earn a consistent profit to meet the monthly loan payment. Should you find yourself just breaking even then it’s time to adjust the price.
Note that assigning the rental fee at too high a rate can backfire. You risk having an empty unit that would only cost more to maintain month after month. A good strategy to follow is performing a market price analysis using competitors in your Rhode Island area. You should base the rental rate on the following characteristics:
Neighborhood
How much are the other landlords with similar rental properties charging in your Rhode Island neighborhood? You will already have an idea of the general pricing range to follow after researching this information. Comparing against other neighborhoods can be inaccurate since they’ll attract a different market segment.
Another thing that would differ in other Rhode Island neighborhoods is the existing amenities that residents would enjoy. That’s why, it’s preferable to evaluate the rental pricing set by other landlords in your immediate area.
Number of Bedrooms and Bathrooms
If your Rhode Island rental home can allow more residents, then you can assign a higher rent. It’s understood that properties with more bedrooms and bathrooms have prices higher than studios or one-bedroom rental spaces.
Property Type
Single-family properties offer the occupants more privacy. There are no shared walls and multiple floors occupied by different people. Thus, the amenities are also exclusive. If your Rhode Island rental property is a single-family unit, then you can typically charge a higher rental fee.
Age of Construction
A new Rhode Island rental property has the advantage of a higher rental fee since most residents prefer staying in a newly constructed unit. The reason is that as a first user, you won’t need to worry about existing property damage caused by the previous occupants or wear and tear.
There would also be little need to report a property issue since all home systems and appliances would be functional.
Sources To Rely On When Setting the Rental Price
Here are sources you can consider using for rental price setting:
In-person Property Tours
You can schedule to tour a Rhode Island property that’s comparable to your own. Upon speaking with the landlord, you can inquire and determine if there’s a high rental demand while taking into account the rental fee assigned by the rental owner.
Online Ads
If you don’t have time to drop by and tour a rental unit, you can check property listing sites. Look for rental properties that are similar to yours and track their marketability. Identify which units are rented out immediately and evaluate the rental fees. You also want to keep on eye on ones that have been on the site for a long time and if the landlords have readjusted their prices.
Property Management Company
Since a property management team works within the rental market day in and day out, they can make use of their strong industry expertise and assign a fairly accurate rental price. You can consider hiring a property manager as they can perform a detailed rental analysis.
Setting The Rental Price Based On Your Amenities
It’s best to assess the best features offered in your rentals and then fix a price based on the amenities it offers to the residents. Here are factors to consider before assigning a higher rental fee:
- Does your Rhode Island property offer amazing views?
- What floor is your rental unit located in? Since higher floors offer the best views and provide more privacy, the fee can be set higher. The only exception is if the unit is a walk-up.
- Do you offer extra spaces outdoors, such as a patio or a balcony? If you have these bonus features, then the rate can be higher.
- Did you recently renovate your unit and provide top amenities?
- How big is your rental space? The bigger the square footage, the more you can charge.
- Do you provide a parking area? A higher rental fee can be assigned if you offer private or reserved parking.
How Optimal Rental Rate Leads To More Profits
Assigning a correct rental fee helps you pay off the costs of operating your Rhode Island rental property. You would be able to maintain it better and schedule professional cleaning once in a while.
With a well-maintained rental unit, residents would be encouraged to stay for the long term given the great value you provide. As a landlord, a consistent income will earn you good returns from the property investment.
Reminder Before Setting the Rental Fee
Over time, you will need to adjust the rental price of your Rhode Island rental property. New developments will occur and you need to account for the market changes, including the state of the economy. It’s, therefore, important to periodically review the rental demand before adjusting the rental fee.
Bottom Line
Check the factors outlined in the article to help you set the right rental price for your Rhode Island rental property. Perform independent research and be updated with the economic conditions to ensure that your rental price matches the current market’s state. Evaluate the pricing set by your Rhode Island competitors and you are bound to end up setting the right rental fee.
If you are looking for a trusted property manager to take care of your Rhode Island rental property, turn to Stonelink Property Management today! We provide outstanding property maintenance, effective marketing, and regular inspections to ensure your rental property stays competitive. Contact our property management team today to learn more about our services!
