Wondering how LLs on here calculate the rent on their units.
My considerations are:
1. the rent needs to be reasonable enough that it catches the attention of people in an online listing.
2. The rent needs to be high enough to discourage poor tenants.
3. The rent needs to be reflective of the quality of the unit.
My method is to open up the online classifieds (kijiji here, likely Craigslist or similar where you are) and peel off a representative sample of units - at least 25 - and see what their ask prices are. Then in excel I calculate the average and 85th percentile prices. My price will between those.
If there are more "asking" than "available to rent" ads, I can afford to move higher in the range. If my unit looks nicer than average I can move higher. If a market is saturated (for 1brs for instance) I may need to move lower.
Based on the above, I come up with a base price, then fly a test ad to see response rate. If it is strong, I invite folks through for viewing and select tenants. If weak, I may need to revisit the price and offer a reduction.
What does your process look like?