How Much Should I Charge For Rent? A Landlord’s Guide
Establishing the right and fair rental charge for your property can be a difficult balancing act. Charge too much, and you risk driving away potential tenants or dealing with a vacant property for extended periods. Charge too little, and you might miss out on valuable income. So it isn’t a surprise that someone in this position would ask how much should I charge for rent… there is a lot to factor in.
Whether you’re an experienced landlord or just starting out, figuring out how much to charge for rent is incredibly important for maximizing your investment returns. It’s also helpful to ensure you don’t always have your rental spots vacant because you can’t find tenants at a certain price point. This can be an issue in Atlanta. If you’re looking for property managers in Atlanta, feel free to give us a call, since we have expertise in this. For now, let’s do an overview of considerations on the topic.
Table of Contents
- Factors That Affect The Rental Pricing
- Common Mistakes to Avoid
- Should You Get Professional Property Management Services?
Factors That Affect the Rental Pricing
Inevitably, this is a complicated question. Because it varies! Determining how much should I charge for rent has many factors to consider. There are many aspects that come into play in order to determine a rental price that makes sense for you and your particular circumstances. So let’s dive in and hash out some of the most common factors.
Location
Location, location, location. It’s a phrase attributed to a British real estate tycoon named Lord Harold Samuel, but it certainly is applicable for this conversation. Location is oftentimes the #1 factor when figuring out how much to charge for rent.
The most common consideration is in metropolitan areas such as Atlanta and how far away the rental is from the downtown area. In addition, specific neighborhoods within that area might be traditionally more or less based on availability in that area as well as, of course, just how much people want to live in that neighborhood.
One thing you can do is look up how much comparable spots are in buildings right across the street or down the block. In fact, that is probably the best path towards figuring out the question of how much you should charge for rent. Look across the street! That’s not to say your rental charge should be the exact same, but it’s a good starting place.
Characteristics of the Property
The next most likely place you’re going to look is at the property itself and its characteristics. Certain aspects of the property immediately result in the price being a bit higher or lower. Here are the most common aspects of the property to consider.
- Type of Property – Is it a single-family home, duplex, or single apartment? Overall, these determine all kinds of things and factor into what people inherently expect to pay.
- Number of Bedrooms – This dramatically affects what someone can expect in rental charges.
- Size of Property – Breaking down the square footage and comparing it to other properties is important.
- Furnishings – Whether the property comes furnished and the quality of those furnishings is a major factor.
- Special Features – Is it an apartment building with a pool? Does it have a view of the ocean? There are many special features that could affect the pricing.
Timing
There are a lot of external factors that come into play when determining how much you can rent your house for, not to mention apartments and other rental property. For example, what is the job market like nationally, as well as in your city and region? What is the average income in the area, and is the economy generally doing well or not? There is also a general supply and demand component that plays into it.
Researching these things might tilt your decision in certain ways. Investigating what experts are saying, especially in your region and what they are saying about the current climate, could have an effect on rental charges you decide on.
Utilities
What about utilities? These can vary from one rental property to the next, which means the price of the rental can be affected. For example, if the landlord is paying for certain utilities, perhaps there is an expectation that the rent is more to account for that expense. What utilities that are expected from renters versus landlords can vary by region and property. So like other things on this list, it can help to look at other rental properties in the area to get a sense for what others do and what the expectations are.
Laws and Restrictions
Keep in mind that regions and cities can have certain laws and regulations in place. For example, some cities have rent-controlled property. Other areas may also have tenant rights regulations that come into play. Therefore, do your research. You can check the Georgia Landlord Tenant Handbook for Atlanta-based regulations that may be pertinent. In fact, even as recently as 2024 Georgia passed a new tenant protection law that may be a factor for many landlords.
Common Mistakes to Avoid
There are some clear and legal ramifications for any decisions made regarding rental properties. One of the last things you want is to do something that puts yourself in legal jeopardy. Here are some things to keep in mind.
Security Deposits
Specifics on how much landlords can charge for security deposits vary by location. For example, under Georgia law, it the acceptable limit for security deposits is up to the equivalent of two months’ rent. But always do a fresh look and keep up-to-date with any changes.
Changing Rent
Landlords must be careful in how any change of rent is handled. It’s not just about how much should I charge for rent. Georgia as well as most states have clear laws and regulations regarding anything that could be deemed retaliatory. What does this mean? Basically, if a tenant reports a violation or does any number of things that the landlord may not particularly like, anything that has the appearance of being a retaliation of those acts could be problematic.
This is in addition to having a 6-day advance notice for any rent adjustments. In general, be careful and ensure that any rent increase notices you send are clearly documented, consistent, and transparent.
Should You Get Professional Property Management Services?
Being a landlord requires a lot of daily management that becomes a lot to handle – and decisions about rent is just a small part of it. Trust us, we understand! For landlords, receiving and managing monthly rent becomes a lot to handle.
By choosing to partner with the experts at Bay Property Management Group, we act as a bridge between you and your tenants. Our dedicated team of leasing agents and property managers are with you through every step of the process, helping you get the most from your rental investment. Interested in learning more? Contact us today for a free rental analysis and see how professional property management services can help!
