One of the first things homeowners ask us is how much they can charge for their home, and how to establish their rental prices. We figure out rental rates by doing a little homework and focusing on four key factors; location, size, market conditions, and time of year.
You’ve heard it in real estate – location, location, location. The importance of location is also true with rental properties and the corresponding rental rates. Desirable areas like downtown Charleston will rent for more, and if you have local amenities like beaches, parks, or a property that’s close to work, those are desirable areas as well. If you’re in a good school district, your rent can also be a little higher. If you’re not located in a desirable area, the rental price will come down a little. If you’d like to live there, you know that others will want to live there.
Figuring out how to set rent also depends on the size of the property. You want to look at square footage as well as the number of bedrooms in the property. When you have a larger property, you can ask for more rent. Sometimes, you have a home that’s large enough for roommates, and when you have more roommates, they can afford more rent.
Property Management Charleston, SC: General Rental Market
We look at what’s currently on the market in that area. We can check online sites like Zillow as well as the Multiple Listing Service, or MLS. This tells us what’s currently on the market and what has rented in the last six months and the last 12 months. It gives us a good idea of what the rental market is doing now. We pick properties similar to the one we’re listing, and we divide what it rented for by the square footage of the home. This tells us what tenants are willing to pay per square foot, and we can get a ballpark price for our own listing.
Time of Year
The winter is really slow and the spring and summer are busy. We have learned the majority of people tend to move in the late spring through the summer. That’s on the school schedule. Whether you are a student yourself or you have kids in school, it’s the best time to move and pricing can be affected when there’s more demand.