Rents have increased in the local market recently, and that’s good news for owners and investors who are renting out a Cleveland property. You may be wondering what you should rent your own property for, and that’s going to depend on a number of things.
Don’t set a rental value arbitrarily. Take the time to research the market, evaluate competing properties, and then decide what your property has to offer.
Here are some of the things you’ll need to consider when you’re attaching a price to your rental home.
Location Matters with Cleveland Rental Prices
When you’re buying or selling a house, you’ve heard that location, location, location is the number one factor in how it’s priced. Location matters with rental properties, too, so think about where your property is in relation to shopping, entertainment, and commuter routes.
A home in a desirable neighborhood with good schools or a condo downtown in a walkable neighborhood will rent for more than a property that’s more rural and remote. This is something to consider before you invest. Location will impact what you can charge in rent, and the better located your home is, the more rent it will earn.
Competition in the Cleveland Rental Market
Take a look at the competition. Are there a lot of other properties similar to yours on the market? If so, you may need to lower your asking price a little bit to remain competitive and attract the best tenants. Well-qualified renters know that they’re in high demand, and they’ll be looking for value when searching for their next rental home. If it’s a landlord’s market and there are no homes like yours available, you’ll be able to ask for more in rent. Take the local temperature.
A comparable market analysis can help you get an idea of what the competition looks like. It can also give you a ballpark for where your property should be priced. Make sure you compare your home to homes that are similar and close by. And, use good data. The prices you find on Craigslist aren’t necessarily reflective of what those homes rented for or how long they were on the market. A Cleveland property management company can help you gather and analyze these numbers.
Property Condition and Size
Size matters when we’re talking about how to price your property. Tenants may be willing to pay for extra bedrooms and bathrooms, and with more people working and learning from home, space for a den or office will increase your rental value. A garage or a fenced backyard will also allow you to charge more.
More important than size is condition. You have to provide a well-maintained home if you want to ask for high rents. Invest in some upgrades and updates like new floors, fresh paint, and better lighting. Amenities also matter. If your property is in an HOA community with a pool and a fitness center, you can probably charge more rent than a house that doesn’t have these things.
We have reliable market data and we keep a close eye on the local rental market. To hear about our Cleveland leasing and property management services, please contact our team at IIP Management. We work with owners in Cleveland Heights, Lakewood, Lyndhurst, Parma, Solon, and South Euclid (Cuyahoga County).