Pricing Your New Hampshire Home to Rent

Key Takeaways

• Pricing your rental right helps attract long-term tenants and boost your rental income.
• Look at your property’s value, square footage, and nearby listings to guide your pricing.
• Location, amenities, and property features all play a big role in what you can fairly charge.
• A local property manager like Keyrenter New England can help you land on the perfect rent and support your overall success.

One recipe for successful landlording in New Hampshire is knowing how to price your rental property correctly. Because when you price it correctly, you can attract and retain a quality tenant in your property. And high occupancy rates will mean being able to keep more of your rental income for an optimal return on investment.

As a local property management company, Keyrenter New England understands that setting the Goldilocks’ rental amount can be anything but easy. This is especially true if you’re just getting started and have no experience with landlording matters. 

You may find yourself either overcharging or undercharging tenants. Neither of these two scenarios will ever be good for your investment property. With that in mind, here are 5 expert tips on how to price your New Hampshire rental property correctly.

1. Use the Value of Your Property 

You can use the value of your property to determine just how much you can charge tenants in monthly rent. Suppose, for instance, that the property you purchased is valued at $100,000. 

To know how much rent to charge, multiply the property’s value by 1.1%. This will result in a monthly rent of $1,100. 

That said, this formula isn’t granular. It doesn’t account for things like the property’s location, amenities, features, and layout.  Also, you’ll need to consider the prevailing market conditions to charge a competitive price. 

If the property is situated in a market with high rental demand, then you could charge more rent. However, if it’s located in a competitive market with tons of other rental properties, you may need to adjust the price lower. 

2. Research What Comparative Units Are Charging

This is another method you can use to determine the rent amount to charge for your New Hampshire rental property. To find these amounts, you can look at comparable listings in the surrounding area. Remember, the units must match for this method to be effective. Only look at listings that compare with yours in terms of the following. 

• Same neighborhood. 
• Proximity to similar amenities. 
• Similar square footage. 
• Matching property type. 
• Similar number of bedrooms and bathrooms. 

Ideally, identify at least 3 such properties for comparison. Please note, however, that no two properties are exactly alike. Therefore, make sure to adjust the rent price for the differences. 

3. Determine the Rent per Square Foot

Sometimes it may be difficult to find comparable units to compare with in your neighborhood. And this is where the square-foot calculation comes in handy.

Now, suppose there is a nearby property that is measuring 1,000 square feet and the landlord is charging $1,250 per month for it. With this information, you may be able to estimate just how much rent you can ask tenants for your New Hampshire unit. 

The goal is to get the rent per square foot of the property. So, for the nearby property, this would come to $1,250/1000 sq. ft. = $1.25 for every square foot. Now, take this value and multiply it by your property’s size. Supposing it’s 1,500 square feet, for instance, then that would come to $1.25×1,500 square feet = $1,875. 

4. Consider Other Factors 

You shouldn’t rely entirely on the formulas above when calculating the rent amount to charge tenants. Why? Other factors can also impact the rental price. One of these factors is location.

This is going to be the single largest determinant when it comes to determining rent amounts. Areas with parks, strong job markets, and limited housing supply, for instance, tend to have higher rental prices. 

Amenities also play a huge role in determining property values, and by extension, rent amounts. Homes that are near shopping centers, restaurants, grocery stores, and entertainment venues tend to charge premium rents than homes away from such amenities and conveniences. 

Another factor determining home rents is a unit’s desirability. The more desirable it is, the more rent you can charge, and vice versa.

Tenants often consider things like appliance types, air conditioning, storage spaces, number of bedrooms and bathrooms, and size of the unit. Savvy tenants will even consider the floor level the unit is situated. 

5. Hire a Property Management Company 

Hiring a property management company can be the best decision you can make for your New Hampshire rental investment. Property managers will usually have years of experience in the local rental market to help you determine the perfect rent amount. 

What’s more, you can also count on their help for other services as well. Including:

• Marketing the property when it becomes vacant. 
• Screening prospective tenants to find a responsible one. 
• Staying legally compliant with the local landlord-tenant laws. 
• Handling repairs and maintenance for you. 

And much, much more! 

Conclusion 

As a landlord, you won’t be able to maximize your ROI if you get the rental price wrong. That’s why due diligence in this area is key to success.

For expert help in any aspect of landlording, look no further than Keyrenter New England. We are a top-notch property management company, serving Bedford, NH, and the surrounding areas. Get in touch to learn more!