You have an apartment and now you want to give it for renting. The first thing you need to do is to determine the rental cost of your property. Now, being a landlord is a serious business. You definitely want to make profit. Therefore, you need high-end renters who will make a fair deal with you. There are several options for tenants when they think to take rent, so, you have to be unique among the crowd. Setting the correct rental price can bring suitable tenants who will not be reasons of any trouble. To determine the right rental price, you just need to do some calculation and a thorough market research.
Ways to Fix Rental Price
Calculate at 1.1 Percent Rate –
When you’re ready to give your house for rent in Bangalore, you must fix the rental price first. This value is used to decide the rental cost as it is the standard unit of settling on the price. For example, if your property is cost $80,000, the rental value would be $80,000*.011=$880. This is the monthly rate that you should charge from your tenants. But, this calculation is not absolute. The 1.1 percent rate is applicable for properties within $100,000. Properties more than that can’t be charged on the basis of this rate as that is too much to ask for. The calculation value for properties range between $100,000 and $350,000 is calculated at .8 percent rate.
Know the Limitations –
Now; this calculation is not ultimate for deciding the rental price. Suppose, you have a wonderful house for rent in Bangalore which is located far from every necessities and the transportation cost is much for the tenant. Then, he/she may not get attracted to this offer. So, there are other deciding facts like high-end neighborhood, location, designed layout, nearby amenities, etc.
Compare the Price –
You need to go through a thorough market research to compare the price of the similar units like yours. You can also compare the price on online sites. There are certain things to consider while you start your research-
- Search certain properties that match to yours according to the square foot, number of rooms, amenities, age and location
- Make a list of those properties and the price the owners are charging. Now, evaluate whether you put the same amount or more or less based on the position, facilities and size of your property.
Contact Property Managers –
Property managers know the local market and have clear idea about the rental values of properties of an area. You can contact them to set the rent you can charge.
Contact Real Estate Agents –
This is obviously a wonderful idea to determine the rent of your property. The real estate developers are aware about the rental properties of an area. So, they can define the pros and cons of your property and assist to set the accurate rental price. Besides, they also know about tenants’ likes and dislikes. So, they can guide you to decide to choose right flat for rent in Bangalore.
These are the basic ways to set rental cost for your property. There are other factors which you should consider like adjacent pools, tennis courts, schools, shopping mall and other facilities before setting the rental price for tenants.