If you’ve been following my recent blog posts, you’ve seen me explore some of the legal responsibilities one faces when investing in a rental unit, whether it be within your own home or otherwise. Once your unit has been retrofitted and issued an occupancy permit, it’s now time to rent it out. Pricing your rental property is one of the more important tasks you’ll face as a landlord. Getting top dollar is important when it comes to meeting your financial goals; however, if you set the rent too high, you’ll have trouble finding tenants or experience high turnover as renters seek out more affordable alternatives.
Many first-time landlords choose to consult with a property manager when it comes to pricing their rental unit, while others choose to go the DIY route. Regardless of which path you take, there’s a few important things to remember when determining how much rent to charge:
1. Location and nearby amenities: For obvious reasons, the location of your rental unit is one of the main determining factors in how much rent you can charge. The more sought-after the neighborhood where your rental is located, the more rent you can charge. Other things to consider are proximity to schools, employment, shopping, restaurants, parks and transportation
2. Main features: When pricing your rental, the first things to look at are the most basic aspects of the property such as number of bedrooms and bathrooms, size of the property, access to the property (number of separate entrances/ walk-outs, etc.), overall condition of the property (has it been well-maintained or recently renovated), and types of finishes (luxury style features and finishes will drive the rental price up).
3. Professional management: Keep in mind that using a property management company is not only a major convenience for you, the rental owner—it adds significant peace of mind for your tenants, as well. Renters are likely to pay more when they know that any issues that arise will be dealt with promptly and fairly by a dedicated professional manager.
If you’ve recently acquired a rental property, or are looking to integrate one into your current home or next home purchase, please feel free to reach out to me for any questions you may have. With experience in GTA real estate, rental markets, renovations and property management, I’ve got the answers you need. Together we can make your goals of becoming a profitable and successful landlord a reality.
Be sure to stay tuned to my blog for regular updates and articles on owning rental property in Toronto. In my next article, I’ll be discussing my Big 10 for getting the highest rent. Don’t miss it.
Catch up soon!