No two apartments are exactly alike — and this is especially evident when you’re a landlord trying to price a rental apartment or house. Walk-in closet? Consider bumping up the monthly rent. Fourth-floor walk-up? Maybe decrease it.
Whether you’re a new landlord or a veteran, there are always things to consider when determining the monthly rent your tenant should pay. And if your Pittsburgh, PA, apartment doesn’t warrant the price tag you’ve assigned, tenants won’t even look at it, let alone rent it. Here are five things to consider when listing your rental.
1. Location
You know what they say: location, location, location. The area where your rental is located is probably the most important draw to the property and the most important factor when figuring out the monthly rent. Is your apartment in a top-notch school district or near a large dog park? Or maybe it’s in a hot downtown neighborhood. Just as when you’re buying a home, a good location can warrant a bigger price tag (and a bad location deserves a lower one).
2. Neighborhood comps
Make sure your rental is priced competitively when it comes to nearby alternatives. Check out the median rental price of your city, then your neighborhood. This should give you a better idea of what you should be charging. But the best way to determine your price is to monitor the rental listings on Trulia for a few weeks before you actually list. For example, see what other two-bedroom, two-bathroom apartments are renting for in the area. You could even visit a few to see how your apartment stacks up.
3. The view
Location is almost everything, but actually being able to see outside and enjoy the area is a nice perk! Think about how much you’re willing to pay for an ocean or mountain view versus looking at a parking lot or shopping center when you get a hotel room. If the windows of your apartment look directly at a brick wall or into a grimy alleyway, you might consider lowering the price a tad. Conversely, good views translate into additional cash.
4. Interior upgrades, layout, and square footage
While the exterior of your apartment building or rental house can make a great first impression with potential tenants, what’s on the inside can seal the deal on getting in the right tenant at the right rental price. From an updated kitchen (bonus points for on-trend white cabinets!) to extra square footage in the master bedroom, people want to feel as though they’re getting the most bang for their buck. Once you’ve decided on a price, make sure you advertise and highlight the aspects of your unit that set it apart and make it worth the monthly rent.
5. Additional perks
Keep in mind additional amenities that can affect the rental price you decide on. Are utilities like water, gas, or electricity included? If so, make sure the price reflects that fairly. Valuable perks such as an included parking space or storage unit can skyrocket the unit’s rent and distinguish it from others in the neighborhood.
