For those new to owning rental properties, setting rent prices might feel like one giant guessing game – and one that has you all over the board. You fear that if you price the unit too low, you’ll be losing money. Conversely, if you price it too high, no one will rent from you – so you’ll still be losing money.
It certainly can be a challenge to determine that rental price sweet spot for your multi-family unit, but it’s important to do so in order to achieve success as a property investor.
Factors That Affect Rental Rates in Franklin County
While we wish we could say there was one simple answer to this conundrum of setting rent rates, the reality is there are several factors that go into determining the price of rent. Here are a few of them:
- Location – Not surprisingly, the better the location, the more you can charge for rent. One thing to be aware of when it comes to location, however, is that you don’t want to over-improve a unit for a given area. What can happen is that while the unit itself may be very nice, you may not be able to secure a tenant who is willing to pay a higher price if it’s in a less desirable area.
- Condition – Keeping rental units up-to-date and modern is important for staying relevant with renters. On the whole, the nicer the property, the more you will be able to charge for rent.
- Competition – Take a look around to see what similar units in similar locations are renting for. This will be one of the biggest determinants of the rental rate you can charge. Prospective tenants are shopping around and comparing cost and value with each unit they see, and if yours is drastically more than others, they won’t even look twice.
- Seasonality – Rental rates during the low season (typically the winter months in Columbus) are going to be less than they are during late spring and early summer when there is more demand for rental units.
Determining rental rates can feel like you’re venturing into the unknown, but by evaluating your property through the lens of these factors, you should be able to come to a fair rental price for your multi-family unit. And as always, if you have questions about the market conditions in Franklin County, our team at RL Property Management is happy to help. Get in touch with us to ask your questions.