Setting up a realistic property rental price!!!

[Carlos Urresti]

So, I have one property in mesa, az which I am about to rent in the next month or two... my questions are, how can I set up good price for my single family home? What is the average number of properties you need to look at in your area to compare prices and parameters to get an equanimous price? What affects an area to be more desirable to be rented or not? How can I check backgrounds and screen tenants to make sure they are a good fit? It has 4 beds and 2 baths, 2 stories and a large backyard. It a basic house but the area is very convenient and it has great potential in the coming years. I would really appreciate quality advises and recommendations... Thank you much in advance, God bless all, Best regards, Carlos

[Jon Holdman]

Check out the resources in @Kyle J. first link.  Get on craigslist and find rentals in the same area as yours.  Pretend to be a tenant and call those listings.  Get as much detail as you can about the house, rooms, deposits, utilities, etc.  Write this down.  Check every day for a month and keep notes.  Do units come and go quickly (high demand) or not so much.  If a unit stays unusually long, try to figure out why.

Sometimes new investors think if they overprice their unit they will get a good tenant.  Exactly the reverse will happen.  You'll get a crummy tenant that's been rejected by others and so is willing to pay your excessive price.  Instead, set your price right at or just below the market.  Then you'll have your pick of applicants.

Same applies to utilities and deposits.  If everyone in your area requires first months rent and one month deposit, do the same.  You won't get first, last and deposit.  

You want the first months rent and deposit in cash or money order.  No checks.  And you want a FULL month up front.  If the tenant is moving in on, say, the 20th, get a full months rent, then on the 1st get a third of a month.  If you prorate the first month's rent you could end up with a long eviction with only a partial months rent.

Avoid "working with" the tenant on the deposit.   This is shorthand for "can I give you only a small deposit then string you along for the rest of it until you kick me out?"  If someone is planning to move they need to expect to have a month's rent plus deposit.  Not having it is a red flag the tenant is going to have money issues.  Don't ignore that red flag.