Every rental property is unique, and while you might have an idea of how much it’s worth on the rental market, the amount of rent you actually earn will depend on a number of factors. Some of them you can control, and some of them you cannot.
The Pittsburgh Rental Market
One of the things you have no control over is the strength of the current rental market. You’ll obviously hope to earn enough to cover your mortgage and other expenses, as well as earn a bit of extra cash every month. But, the price you place on your rental home will depend on what’s going on in the rental market, and whether there’s a demand for homes like yours. The whims and preferences of residents often change, and today those residents are more educated than ever. Qualified residents won’t be willing to pay more than the market dictates.
Before you price your property, make sure you take a look at the market. Get to know what homes similar to yours and in your area are renting for. Do a comparative analysis so you know how your own home measures up. This is the first step in determining how much you can rent your home for.
Property Location and Pricing
Your property’s location will influence its price. If you have a single-family home in a neighborhood with a good school system, you’re going to be able to charge a lot more than you could if your property was in a less desirable zip code without access to good schools, commuter routes, and access to shopping and recreation. Properties that are more remote will often rent for less. Once you’ve bought a property, you don’t have much control over its location. But, location is something to consider when you’re considering an investment.
Size and Condition of the Property
The size of your home will also impact the price. For single-family homes, a three-bedroom, two-bathroom home is usually going to earn more than a home with just one bathroom or two bedrooms. However, a condo or loft space downtown doesn’t need the three bedrooms in order to bring in top dollar rents. In that case, amenities will make more of a difference.
Property condition is something that you can control. When you allow your property to look worn and run down, you’re losing rent money. Keep it well-maintained, and make some strategic upgrades and updates. You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new faucets in the kitchen and bathrooms. Replace your drawer pulls with brushed nickel. Install better lighting, and when your appliances start to break down, don’t continue to repair them. Instead, replace them with energy-efficient models or stainless steel. These minor investments will not only raise your rent; they’ll also attract better residents.
We’re experts in pricing rental properties in the Pittsburg market. If you have any questions or need any help, please contact us at Arbors Management. We’ll provide a personalized review of your property.
