10 Essentials for Your New Home, from Top House48 Agents

Determining the right rental price for a property can be a challenging task for landlords and property managers. It’s crucial to find a balance that ensures profitability while remaining competitive and fair in the market. From a comparative market analysis to consulting with your real estate agent, this Redfin guide has everything you need to know about determining rental rates.  So whether you’re renting out a house in a Savannah, GA, or are booking that short-term desert oasis in Joshua Tree, CA, keep reading to learn more.

Conduct a Comparative Market Analysis (CMAs)

Like setting the list price on a property, rental rates are determined by running a Comparative Market Analysis (or a CMA). A CMA involves comparing a subject property to one or more similar properties. 

Key comparative characteristics include, but are not limited to:

• Property year
• Location 
• Square footage and lot size
• Number of bedrooms and bathrooms
• Property features and finishes

By examining similar properties, particularly their square footage, number of rooms, and location, you can establish a benchmark for pricing. Also, consider the condition and age of these properties, as they play a significant role in setting rental rates.

While Redfin offers a diverse range of rental listings, it’s important to consider that not all properties are listed on traditional platforms like your local multiple listing service. Kenneth Ott, real estate buyer for Shark Fin Properties, advises also exploring alternative sites like Craigslist, where owners often directly list their rentals.