Here’s my advice on how much you should lease a property for.
How much should you lease your property for? My advice is to lease it at or slightly below the market rate. Leasing it higher than that is probably the biggest mistake that property owners make.
For example, suppose you have a property with a valued market rate of $2,000. Then you put it on the market for $2,100 and it doesn’t rent for two months. That means you’ve lost two months of rent, or $4,200.
Also consider that when you have a vacant home, leasing for above market value can be a dangerous thing if it means you don’t have a tenant. You’ll still have to take care of utilities, do lawn maintenance, and so on; plus, people could break in and steal appliances. It’s really better for your home to have a tenant in it, so it’s important to lease it at market value.
If you have questions about this or any other property management topic, call or email us. We would love to help you.