7 Factors to Consider When Setting a Price for Your Jacksonville Rental
July 13th, 2023
So, you’ve decided to break into the Jacksonville real estate industry and become a landlord – how exciting! But now you’re starting to realize there are many things you need to consider, including determining your rental price, and you’re not sure where to begin. Well, that’s why our experts at Evergreen Home Buyers have compiled a list of 7 factors to consider when setting a price for your Jacksonville rental to help make the transition from homeowner to landlord a little bit smoother.
1. Size & Location
One of the first things you need to look at when setting a rental price is the size and location of your rental unit. Obviously, if you’re renting out a multi-bedroom home, you’ll need to charge more than if you’re renting out a bachelor pad. At the same time, you need to be aware of the unit’s location and how that can affect the pricing; for example, a unit in a more sought-after neighborhood means you can charge more in rent.
2. Age & Quality
Next, you’ll want to consider the age and quality of the rental unit. Ask yourself questions like, ‘When was this unit built?;’ ‘What type of updates does it need?;’ and ‘Are there any issues that would affect my tenant’s quality of living that needs to be addressed in the rental price?’ (For example, unreliable hot water or leaky roof).
Beyond looking at your rental unit as it sits, you’ll also want to look at the competition in the neighborhood when setting your rental price. Go online and find similar units in your community to see what they’re charging, and this can help you determine a price that’s both reasonable and on par with others in the market.
Although following these other suggestions can give you a good ballpark number for what you should charge in rent, one crucial thing you need to look at is demand. Demand can affect the rental rate for your property both positively and negatively and is impacted by several factors, including the economy, seasonality, and the rental market, in general. So, when demand is low, your rent will probably need to be lowered to bring tenants in, whereas when demand is high, you can set the rent at a higher price.
Something else to consider is what amenities are available to your tenants, whether on-site or nearby. Maybe you own an apartment in a building with a gym and a pool, or maybe your rental unit is a few blocks away from the best school in the neighborhood; all of these things are something to consider when setting your rental price.
Did you know that people will pay a little extra to have their pets in a rental unit? Whether it’s an upfront or monthly fee, pets are a part of the family, so if you’re able to accommodate them, you can charge a little bit more in rent (within reason).
7. Property Expenses
Finally, and potentially the most important thing to consider, is your property expenses. You’re getting into the real estate industry to make some money, so you need to ensure that the money you’re putting into the unit each month is not only covered by the tenants but that you’re getting a little bit extra back for all your hard work.
Admittedly, breaking into the real estate industry, especially as a first-time landlord, can be overwhelming at times. However, when you break it down step by step, things like determining your rental price becomes a lot easier. We hope this article helps take the stress out of setting a price for your Jacksonville rental, but what if you’re tired of being a landlord and just want to sell your home as is?
Well, at Evergreen Home Buyers, we will purchase your home for cash AS IS, making the process entirely hands-off for you with no repairs, inspections, appraisals, or contingencies necessary. Plus, we can close in as little as two weeks! So, for a completely quick and painless way to sell your home for cash faster, visit www.selltoevergreenjax.com today.