Deciding how much to charge for your rental property is a big decision, and one that many landlords struggle with. Setting the rent just right is important—if it is too high, you won’t find a renter, and if it is too low, then you will not be maximizing your profits. You need to do some research to find out how to set a rate that is appropriate for the market and the neighborhood.

Check the local newspapers. This is the ideal way to find out what similar properties are rented for in the same area. The same 3-bedroom apartment in one neighborhood may draw significantly less rent in another neighborhood. Often, location is the key. Tenants will often opt for convenience above most other amenities, and people want to be close to work or good schools, so consider this when making your investment rental property purchase! Another thing that can significantly affect the rent is having a property located in an up-and-coming hip neighborhood. Let’s face it, some addresses are just more desirable than others.

A larger apartment will usually draw more rent than a smaller place. Most tenants will want to get the most space for their money that they can. When you compare your property to others, be sure to compare similar sized units.

Even the nicest places have an upper limit to the rent that you can demand. At some point, rent that is too high will lead the renter to simply try and purchase their own home. If it costs too much to rent someone else’s property, then owning their own becomes far more attractive to the renter. Renting needs to make sense to the tenant.

Local landlord groups and associations can help you when you are setting rent rates. Having discussions with other landlords can help you stay in touch with the real estate and rental trends, and keep your rents more in line with the current market. Knowing about local economical issues, such as new jobs or plant closings is critical information. Sharing information benefits everyone. This arrangement can be especially useful for out of town landlords who may not have immediate access to the local information.

Different amenities can change the amount of rent you can demand. For example, having off street parking available is a prime feature for most rental units. Laundry facilities, security, included utilities and dishwashers will also draw tenants. Different combinations of these features will have different rent potentials. Not having these various amenities may mean that you have to ask for a lower rent. For assistance, contact a Michigan property management company.