How to be a good landlord: Working out the right rental price

For landlords, working out the right rental price may be as tricky as finding the right tenant. However, there are some basic guidelines which you can follow to help you work out the right rate.

Look at other similar rental homes.

Do some research on how much rental homes in your area typically go for. As far as possible, try to find rental properties which are similar to yours. This should give you your first, general idea on how much you should price yours.

Consider your costs.

If you have spent some money doing up your rental property to ensure that it is fit for a tenant, you may want to factor that into your estimate. This includes paint jobs, additional fixtures or repair works which you might have carried out.

Make a list of the facilities in your rental property.

By making a list of all facilities you are including with the property, you will gain a better idea of what you are offering to a tenant, thus making it easier for you to gauge the value of the rent.

This should include kitchen cabinets, electrical appliances, water heating systems and air-conditioning, if any.

Assess the neighbourhood.

You should consider both the pros and cons of the neighbourhood.

If your rental property is located near Mass Rapid Transit (MRT) stations or bus interchanges, you could factor that into your calculations.

You should also take other seemingly trivial matters into consideration, such as whether the property is located beside a busy road and the kind of people who live next door to the rental property, as tenants will certainly take note of these and may bring it up during negotiations.

Get a comparative market analysis.

As this is usually carried out free of charge, you should approach a real estate agent to provide you with a valuation of the property and to lend you some input on the figure for rent. If possible, try to get more than one valuation so that you will have a better idea of where your rental property stands.

Go to : Winning over tenants

Go to : Understanding your tenant’s needs

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