How to determine proper rental price?

[Adam Delort]

Hey guys, i am really itching to buy my first rental property!!! I just am nervous! How do you guys come up with the rental rates for your properties? Do you increase them each year?

[Adam Delort]

Originally posted by @Linda S.:

Agree with @Nicole A., see what your market is paying for your type of rental.    I use CL, zillow, hotpads,  and make adjustments based on amenities, our biggest thing is including a washer and dryer.     

Regarding the increase, it all depends on your market.. if it's a hot market, I think a 3% increase each year is reasonable, but if you do low income areas like myself,  I'd really recommend structuring the leases where they get a discounted rent if paid by the first.   If they don't, the price is about $30-$50 higher, that way you get your rent in sooner, and if they don't, you get a higher amount to reflect the risk.   The choice is the tenants, which I think they like too! 

 I REALLY REALLY like this idea! 

thanks for the input guys!!!!