A Rental Comp is the comparable rental listing that evaluates and determines the value of your property. It’s a basic real estate tool used to determine the average price of a rental property. Rental comp is all about comparing your property with other similar properties to get a profitable value.
With Rental comps, you have knowledge about the right pricing of your rental property. It helps to determine the accurate price for your property. Rental comps are important in rental business because they help you to know when you are pricing your property too high or too low. Pricing your rental too high may extend the duration of vacancy. It can drive people away from your property because the price is way higher than that of other similar properties around.
Rental comps help you to know the appropriate price to place on your property. It comes in a table format with the listing of similar properties and prices. It ensures that you don’t fall low from the market value of your property
How To Gage What You Should Charge For Rent
In real estate, property owners are required to charge according to Market Rent which is the average rent rate in a particular area. You can fix your rent charge by making use of the Rental Comp to check about pricing in your area. You may be required to follow strictly the price other landlords are giving their properties up for.
Since it’s the same area or vicinity, your price has to agree with others. There are other additional variables that determine your rent charge. These variables include
- The number of bedrooms and bathrooms that your property holds. The price of a 2 bedroom property is expected to be higher than that of a single room property. So, you are expected to consider the number of rooms when looking to fix a price for your property.
- Special amenities : special amenities or features means a raise in price.
- Another variable to consider for your pricing is if the property is completely furnished. A property like this is regarded as a ready-to-move-in property. The whole place is completely furnished for renter’s comfort.
- Location: the closeness of the property to grocery stores and other amenities may influence the price.
- Pet rental fee
- Garage, storage, parking space, etc.
Rental comps are the most valuable information you need to strike a suitable pricing for your property. It ensures that you are not on the losing end in the rental market.