If you’ve thought about renting out your house in Katy, TX, the first question you probably asked yourself is: How much can I rent my house for?
To start figuring that out there are several things you need to consider. This blog is going to explain what those are, and how they can affect how much you’ll be able to rent your house out for in Katy, TX.
What Affects the Rental Price for My Home?
Factors that can affect how much you’re able to rent your house for can range from your home’s condition to what kind of doorbell you have.
The rent you’re able to charge is also impacted by what similar properties rent for. But, of course, the single most important factor that will determine how much your house will rent for is location.
1. Are You in a Good Location?
The same house in a good location is going to bring in more money than the same house in a bad location. Luckily, most homes in Katy, TX, are in desirable neighborhoods because of the sought-after school system. However, some neighborhoods like Cinco Ranch and Seven Lakes will demand more rent than other areas.
2. What Do Similar Homes Rent For?
One of the first clues to knowing how much your house can rent for is looking at comparables. These are homes that are in a similar location (hopefully in your same neighborhood or subdivision) and are about the same size and number of bedrooms and bathrooms as your house.
There are many other variables you can look at when doing a comparative analysis, but simply looking online at similar houses for rent will give you a rough estimate. You can filter by size, location, number of bedrooms, with or without a pool, style of home, etc.
3. Who Are You Competing With?
How much you’re able to charge for rent in Katy also depends on supply and demand. If you have the only 4-bedroom home in a neighborhood people want to live in, you’re in a pretty good position.
But if there are 10 four-bedroom houses for rent within a small vicinity, you’ll have to set your rent at a competitive rate.
4. What Amenities Can You Offer?
Although your house is similar to others for rent in your area, amenities can give you a competitive advantage and allow you to charge a little more for rent. These can include new, high-quality appliances, beautiful bathrooms, and outdoor living space in the backyard.
Amenities can also include what the neighborhood offers. Is there a community pool? Tennis courts? Close to a park? Does it feed into a good school? Are there good restaurants nearby? Upscale shopping center? All of these can affect how much rent you can charge.
5. Should I Charge the Same Rent as Everyone Else?
No, you should not. You should try to charge a little bit less for a house that gives prospective tenants a little more. This is because you want your house rented out faster than the competition. As houses get rented out, the pool of qualified tenants interested in your area goes down and the longer you may have to wait to find a great tenant.
Charging a little less in rent to quickly secure a 12-month lease would be an ideal scenario because vacancies are a rental property owner’s biggest expense. If you go in $50 a month lower than the competition and your house rents out a month faster than anyone else, that’s $600 less in rent collected, but one month of vacancy can cost you $2,000.
Deciding How Much Your House in Katy Can Rent For
Setting an optimal rental price is crucial to maximizing your profit as a rental property owner. These steps are just to get you started and get an idea of what your house could rent for. There is much more information available (for example) to help you settle on the perfect rental rate.
A local property management company can also provide data and insights about the Katy rental market.
Working With a Katy Property Management Company
At Residential Leasing & Management, we’ve been managing properties in the Katy area for over 40 years. If you have any questions about how much rent to charge or anything else related to rental properties, we’d love to help.
As property managers in Katy, we can also help with screening tenants, placing tenants, maintenance requests, collecting rent, routine inspections, and more.
Contact us today to learn more about our services, get a FREE rental analysis, or get some friendly advice from Katy property management experts.
