Renting Real Estate Property: How Much to Charge

To be a successful property manager one of the things that you need to know is how much to charge your potential tenants and understanding it is far from arbitrary. Choosing a rent to charge can be particularly tricky, especially if you have just stopped investing into renovating and upgrading your rental unit's facilities to make it stand out from those of your competitors (located in your nearby area). It is crucially important to not overestimate its cost.

Say you have a few Poltava apartments that you would like to find tenants for. Overestimating their market value is an easy thing to do because you have spent so much energy and efforts to make things look nice and sparkle. Nevertheless, it is very unlikely that your potential tenants will be very much impressed with that fact that you have laid out the tile this nicely. Quite the opposite may happen. Their furniture may be of a different color than the color of your carpet. So, they may point that out to you as one of the cons of the apartment you are showing them hoping to lower the price. Now it looks like it is they who are doing you a favor and nobody appreciates all those little details that you took care of to make your apartment look nice.

Being a pushover and working in real estate are too incompatible things. Some real estate owners and property managers are just too nice. You should be able to demonstrate your potential tenants that the price you are offering is fair. Being able to bargain is a huge plus in this business.

If a person has decided that he or she is going to rent your property, there are a few more things that you need to decide before your tenant moves in. They are:

• The amount of the security deposit
• The type of rental contract

The importance of choosing the right type of rental contract should not be underestimated. This decision has long lasting consequences. Two possible options are: to lease your rental property of sign up a month to month rental agreement. It is up to you to decide which option is best for your particular residential property. One of the things I may recommend is doing a market survey. This will help you a lot, plus you will be able to understand the pros and cons of each type of contract.

When it comes to the amount of the security deposit, setting it is a function of market conditions and limitations on the amount you can charge your tenants and of course determining whether that amount should be fully refundable. It is important to consult your legal professional because these restrictions may vary and are determined by your state's law.

Remember that vacant real estate property is not the best of investments and setting the right price for it is one of the most important steps that determine whether your residential real estate property is going to be in high demand.

Alex Kravchenko is a property manager who offers Poltava apartments for rent to individuals and group of people traveling to Poltava, Ukraine.