Strategies to Determine Fair Rental Rates for an Investment Property

 

Fair Rental Rates pic

Fair Rental Rates
Image: investopedia.com

Jason Cohen of Jason Cohen Pittsburgh has his headquarters in Pittsburgh and has acquired multiple real estate investments in less than a decade’s time. An expert on real estate strategies, Mr. Cohen currently serves as the principal of Jason Cohen Pittsburgh, which provides expertise in a broad area of real estate investments that range from evaluating the potential profitability of a property to setting fair rental prices.

When setting rental prices for an investment property, fair rental prices should be listed to encourage long-term renters and avoid the cost of turnover. The use of comps is one strategy often used to determine fair rental prices.

A comp, also known as comparables or comparable sales, is an analysis of recent, nearby sales or rentals gathered to valuate real estate property. Individuals who look at comps are implementing a sales comparison approach (SCA). When identifying properties with this approach, they should possess similar qualities such as square footage and the number of bedrooms and bathrooms. This approach allows rental prices to be set competitively with other landlords and also attract tenants.

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