Real estate investment has been a reliable source of generating passive income for many investors. For many years, investing in rental properties has created additional and consistent cash flow by the means of rent. Over the past few years, the housing market has grown steadily in the United States, especially in Dayton, one of the major cities in Ohio.
Dayton is an affordable place to live, as compared to the other cities in Ohio. In fact, research suggests that the cost of living in Dayton is lesser than the US average as well.
The low cost of living attracts many tenants to the city and as there are many properties available in the real estate market here, you stand a high chance of making a good profit from your rental investment.
However, it is necessary to note that the rent of your rental plays a vital role in its marketability and appeal. No matter what perks your property offers and how well maintained it is, potential tenants will agree to the tenancy only if the rent is affordable.
Therefore, you must know the current market trends along with other aspects regarding the rental amount, for your Dayton investment property.
Factors To Consider While Deciding Rent
- Check the rent charged by other landlords for similar rental properties
Knowing your competition might help you get an idea about what rent you should charge. You should pick a property that is similar to yours for comparison. It’s best to consider your neighborhood if your house is in a good school district, you must take the number of bedrooms and bathrooms, storage space, and the overall square footage into account. Tenants usually prefer newer constructions and are willing to pay more for single-family homes.
- Include the cost of amenities
The amenities of your rental will determine how desirable it appears to potential tenants. If your property has multiple amenities, like a good view, spacious layout, higher floor levels, balconies, newer updates, and appliances, extra storage space, or lawn area, you can increase or charge more rent accordingly.
- Calculate the property expenses
Rents are often decided on a monthly basis. Before you set the amount, check if the price you have decided is enough to cover your expenses for the property. Additionally, you must be left with a surplus amount after covering the vacancy cost, maintenance, repairs, routine inspections, or a mortgage payment.
- Consider the market demand
Deciding the right price for your property requires a firm grasp of the current trends in the housing market. You must keep a check on the trends in demand for housing units similar to yours. Then you can decide on a higher rent. On the other hand, if you observe a low demand for rentals like yours, you can attract tenants by offering low rents.
- Consult a real estate management company
Keeping track of all the above factors to decide a price for your rental property can be daunting. However, you can take the help of a real estate management company like ManCo Property Services in Dayton. With experience and research skills, we can help you set the correct amount for your place.
If you are having trouble deciding the rent of your Dayton investment property, contact us at ManCo Property Services, Dayton, Ohio. Not only do we provide a rent estimate free of charge, but we also offer up-to-date comparable rental analysis to ensure maximum return on investment for rental homeowners.