AW Manage serves the Bethesda, Montgomery County and the Washington DC Metro area
Setting the right rental price for your Bethesda investment property can be a challenge, especially if you don’t have an intimate knowledge of the local rental market. Many landlords become emotionally invested in the amount of rent they expect to get. This is understandable. If you know you need $2,500 per month to cover your mortgage and expenses, you’re going to be pretty insistent about charging that much. But, if properties similar to yours are renting for $2,000, you’re going to need to adjust your thinking.
Today, we’re sharing some of the details that go into establishing the right rental price.
Market Conditions and Competition
The market drives the rental price. It doesn’t matter how fantastic your home is, you won’t be able to rent it for more than what the market demands. You have to look around at other properties that are available. If tenants have a lot of choices and there are a dozen properties just like yours for rent in the neighborhood, your price needs to be more competitive. If yours is the only rental property on a desirable street, you’ll be able to charge a little more. Get a good understanding of the market and your competition before you put a price on your property.
Property Location and Amenities
Location is important whether you’re renting or selling a property. People want to live near the places that they work, go to school, shop, and have fun. In Bethesda, your property will earn more when you’re in a desirable school district or close to a metro station. Amenities such as parking, swimming pools, fitness centers, and other perks will help you charge more in rent.
Property Size and Condition
The size of your home will also impact the amount of rent you can ask. A three-bedroom unit will obviously bring in more rent than a studio apartment. Property condition is also important. To get the most rent, your property needs to be clean, updated, and in excellent shape. You’ll have a hard time earning the highest rents when your appliances are 20 years old and the paint is peeling. Take care of maintenance issues before you rent out the property, and make any improvements that you can. This will help you earn more.
Be strategic when you’re placing a price on your rental property. Everyone wants to earn as much as they can every month. But, if you overprice your home, you’ll face a longer vacancy period, and that will cost you a lot more than a lower monthly rent.
If you have any questions while you’re pricing your property or getting it ready for the market, please contact us at AW Manage.