How Much Rent Should I Charge for My San Diego Rental Investment Property?

Rental value can be an emotional topic, especially if you’re new to real estate investing. The amount of rent you charge for your San Diego property largely depends on the local market and the prices of competing properties similar to your own. 

Put your emotions aside and forget what you want to earn on your rental home. Instead, analyze the data and the comparable market rents so you know what price range is fair for your property. Rental value impacts your vacancy time and the types of tenants you attract. Of course, you want to earn as much as you can every month, but you also must be strategic in how you price and market your home.

While your rental price is largely market driven, there are a few other considerations that should influence how you price your rental home. 

Property Location and Rental Price 

You already know how important location can be when it comes to any kind of real estate whether it’s a home for sale or a home for rent. 

Higher rents typically follow rental homes located in good school districts. Additionally, if your property’s neighborhood provides tenants with an easy commute to work and a short trip to shopping centers, grocery stores, restaurants, and entertainment, you’ll be able to charge higher rents than homes that are in more remote neighborhoods. 

When you’re comparing your home to the competition, make sure you’re analyzing homes in the same neighborhood as your own. Rental prices can vary from neighborhood to neighborhood and even from street to street.

Property Condition

There’s not much you can do about your property’s location once you own it, and the market is completely outside of your control. 

However, there is one part of pricing a property that’s entirely up to you - your property’s condition. 

Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants. 

Pay attention to any repairs or cleaning that your property may need before you list and show it. Even before you price it, make sure everything is in good shape. You can potentially make some small and inexpensive upgrades. Fresh paint, new floors, and minor improvements can help you earn more rent. 

For example, if you put in ceiling fans or energy efficient appliances, you’ll be able to ask for more rent every month, and your tenants will appreciate the lower energy bills. New hardware on the cabinets and drawers can make your kitchen look brand new. Upgrade the lighting and the window blinds. 

These small things won’t cost you a lot, but they’ll help you earn more money every month.