While it’s extremely important, it can be difficult to zero in on the right rate to charge your tenants. While it’s important to understand and cover all of your expenses, you could lose income potential by underpricing your rental. Likewise, setting the rent too far above the current market average can leave you with an empty unit. The following things will help you to know what to charge your tenants on your Chicago rental property.
If you’ve set the price too low, your phone will be ringing off the hook and people may literally be begging you to take their deposit. On the other hand, you may have gone too high if there’s dead silence in responses. You may also note after showing your Chicago rental property, no applications being turned in. Additionally, unkept viewing appointments may be a clue you’ve set the number a bit too high.
There are several sources available to learn what tenants are being charged in Chicago for properties similar to yours. You can easily check for the features that match your rental property, such as comparable amenities, number of bedrooms, and square footage. It’s never a bad idea to consult others with experience in all aspects of property management to gain valuable insight prior to making your decision.
The desirability of your property can be heavily influenced by the immediate vicinity and nearby neighborhoods as well. When it comes to setting a price point, you must consider the location of your Chicago property. Is the area well maintained and safe? Does it offer the added benefit of being near schools? Can you walk to shops, parks or other community attractions?
Pay attention to the added income an extra bedroom or larger garage may bring in the current market. Is there a water view, an extra workshop on the property or updated features and technology that make your offering stand out? You’ll need to do research to understand just how much these desirable qualities or additions will add to your rental profits. It is important to be clear in your advertising and describe everything about your Chicago property that makes it worth what you are asking and stand out among the crowd.
Does your Chicago property offer a shed or have extra-large closets? Is there extra storage in the garage or kitchen? Is there an added bonus of the basement or attic space? If it’s available to you, consider offering optional community storage space for larger complexes or space in another of your private holdings, for an additional fee. Be certain to calculate this into the final rental figure you charge and point this out to tenants.
Remember, this is a competition. Technology is quickly changing how we live and the way homes are being designed. You’ll want to be certain you are offering the most up to date features available to suit today’s tenants. From updated appliances to minor improvements of the general appearance of the interior, these also add value to what to charge for your Chicago rental.
Set yourself above other offerings by adding amenities where possible. Consider offering to include cable, water, or other utilities as a part of the amount you charge your tenants if they’d appreciate the ease of one payment despite any extra costs.
You can avoid the pitfalls of missing the mark in determining your rental rate, Chicago Home Buyers can help you start off on the right foot, send our team a message or call (312) 300-2043 today and let us answer any questions you may have about what to charge your tenants in Chicago.