How to set rental rates for property rentals

When looking to rent your property you should review current rates in your area:

1. Regularly research SW Florida Craigslist classifieds, newspaper rental listings, and internet ads to help compare the market rate in your neighborhood. You may even call local real estate agents to get their rate feedback. Then make a list of the rates and compare what each property offers.

2. Review your list. Do you see any patterns? Do the beach rentals tend to rent for more? Are the winter seasonal rentals demanding higher rates than the shoulder season rentals? Here are more factors to consider when determining your rental rate:

• Area Competition – Did your town on Craigslist have 400 listings or just 40? Pricing your rental at the same rate as others may not get your property noticed when competition is high.
• Marketing Budget – How much do you want to spend to advertise your rental property? The more you spend, the more you’ll need to make to be profitable.
  
• Property Location – Is you property located on the waterfront, have a water view, close to the beach, on a golf course, near attractions, hospitals or stores?
• Property Amenities – Does your property have a pool, a lanai, is it located on the first floor, have a garage, a club house, or tennis courts? Is there anything else that makes your property unique?
• Seasonal and Holiday Considerations – The high or peak season in Southwest Florida is from Jan-March, shoulder season Nov-Dec and April-May and low or off season is June-Oct. Increasing your rental during peak season can help make you more profit.

• Festivals and Events – Naples Wine Festival, Cape Coral Burrowing Owl Festival, and Fort Myers Spring Training are popular Southwest Florida events. Knowing about upcoming seasonal and special events help you capitalize on more rental opportunities.

Once you’ve determined what the average going rate is for your community, your rental duration, and you’ve weighed all the factors mentioned above, it comes down to personal choice—either fill the rental faster with a lower rate and make less of a profit or wait longer for a tenant who will pay you a higher rate to make more income.

If you’d like to start making money on your property investment and want an affordable way to advertise your Southwest Florida rental contact SelectDwelling.