When you’re setting a rental price for your Chicago rental home, you need to be thinking about cash flow. How much rental income do you want to earn? You probably have a number in mind, and a good property management company can help you get there.
Understand that rental value comes down to market trends, and the amount you charge depends on what competing properties are renting for around you. Average tenant turnaround, and how long the average vacancy rate is are two other factors to take into account.
Be smart with your rental pricing strategy. It has to be competitive. It has to attract reliable tenants. It has to help you earn a consistent rental income.
Price Your Chicago Rental Home Competitively
The primary goal is not to lose money on vacancy. The secondary goal is to rent your home quickly to the most qualified tenant. Asking for more rent than the market will bear is going to lead to longer vacancy times, and that will cost you money. You’ll also increase your chances of attracting bad tenants who have previously denied renting other properties. Well-qualified tenants will never overpay for a property.
Get to Know the Chicago Rental Market
The market doesn’t care how much rent you want or need to earn every month. A rental property will only rent for what the market demands. This is something to think about early in your Chicago investment process.
Make sure you understand what you’ll be capable of earning. Don’t leave money on the table. When we talk about pricing your home competitively, we don’t mean you should undervalue it.
Property Location, Size, and Condition
Location is a driving factor in real estate rental prices. A property in a great neighborhood with good schools and accessible commuter routes will rent for a lot more than a property that’s more remote and not close to daily conveniences such as grocery stores and freeways.
Well-maintained homes with plenty of curb appeal and modern updates will capture better rents than older run-down properties. Simple upgrades like a fresh coat of paint, a nicely trimmed front yard, or polished new hardware on drawers and cabinets can make a big difference.
Working with a professional property management company can help you set a competitive rent price. We know the Chicago rental market well, and we have reliable data that will provide a dependable rental range. Contact us at MF Cashflow when you’re ready.