There are a few strategies to setting the rental price on your property when advertising online. Depending upon your personal circumstances and your own strategy, the rental price will vary. Below is a basic timeline for how a property management company or landlord should price their rental property:
Above Market Rent:
No Rush
True Market Rent:
Average
Below Market Rent:
Rush
As you can see, there are three points where you may start from. For this example we assume that comparable properties in the area are renting for $1,500 per month.
If you, the landlord are not in a rush to rent the property, you should consider starting above the market rent at $1,700. If your house has (for example) a renovated kitchen, new appliances, larger backyard etc. . . Then a prospective tenant will assign greater value to the property and will pay more than current market rent.
If the property has not been rented within 7-10 days, consider lowering your advertised rent to exactly market rent. At $1,500 your rental is priced correctly and depending upon time of year, it should be successfully rented within 10-20 days. In the Orlando rental market that is more than enough time to have your property rented, but only if it is in good shape and advertised correctly.
For landlords who wish to rent their property as quickly as possible for cash flow reasons, you may consider setting the price to below market value. If possible, only resort to this if you have tried Above Market Rent ($1,700) and True Market Rent ($1,500). At the price point of about $1,300, you should have no difficulty finding prospective tenants. Being a better deal than other rentals in the area, many tenants will seek out your property to rent.
