Determining a property rental price should not be an arbitrary process.  It takes research and a knowledge of current rental listings in order to decide upon an appropriate amount.  A price that is too low can result in substantial losses on the part of the property owner.  A price that is too high often results in a unit that sits dormant and never attracts tenants.  Here are some factors to take into consideration when estimating the price of a rental property.

Look at rental prices in the surrounding locale – The location of a property plays a vital role in determining the price of rent.  This price must reflect the desirability of the neighborhood and the distance between the property and the city centre.  Generally, the closer a unit is to the downtown core, the more the asking price will be.  Access to grocery stores, public transportation, and proximity to ocean views are other things to take into consideration.  

In order to make a fair assessment, one must do the proper research with regards to rentals in the surrounding area.  While searching through the classifieds in newspapers is a viable option, it can be extremely time consuming and not entirely fruitful.  The best idea is to embrace newer technology and search the internet. 

One of the best websites we use at Urban City Rentals for scouting rentals is PadMapper.com  A person can scout the area around a specific address or they can search an entire city.  Once at the website, a prompter will ask for an address, a city name, or a zip code.  After this has been entered, a wide variety of rental property listings will appear on a map.  This map can be expanded or reduced and every listing will be acknowledged with a pink marker.  By simply clicking on a marker, a person will be able to view the rental details including the address, the type of rental (i.e. apartment, house, or room), and the asking price.  In some cases photos will be included as well.  Even better is the fact that the median of nearby rentals is stated, so one can deduce the average rental price in the surrounding area.  This website is a great tool for those who are deciding upon an appropriate asking price.

Make a fair assessment of one's own property – After looking through PadMapper.com, it is best to then look at what one's property can offer potential tenants.  Is the property an unfurnished room or a furnished one?  Is it a bachelor or a one-bedroom?  Is there a kitchenette or a full kitchen?  What is the square footage of the rental property?  Generally, the more privacy and convenience a unit offers, the higher the asking price can be.  Use PadMapper to finalize a decision by comparing one's unit to those in the surrounding area.  If a bachelor apartment with a private entrance and full kitchen is asking for $900 a month, and your rental is similar, then know that that is the general range that you can work within.  Assess as well the cleanliness of the unit and if there are any bonuses that come with the rental (internet access, cable, a parking permit).  It is these little details that can boost the price and the desirability of a unit.  The combination of what a unit offers, where it is located, and the average asking price in the surrounding neighborhood will help in determining a fair monthly rent.

Deciding upon a good rental price does not have to be a difficult decision.  One only needs to do research on a property's locale and to be truthful about what a unit can offer.  If one is fair and reasonable about the prospects of their rental property, then deciding upon a price that will attract the right tenants should not be an issue.   

At Urban City Rentals, we have helped hundreds of investment rental property owners determine the best rental price to attract quality tenants efficiently and quickly.  To learn more about our professional rental property management services, contact us at 604-677-7369 or visit our webpage here.