There is no exact science to setting the rent. All units, blocks and neighborhoods are a little bit different so it makes it hard to compare apples to apples. What I do when it’s time to set the rent, is I look on platforms like Zillow to see comparable monthly rents for nearby properties. I also sometimes include sales comps as my general rule is monthly rent is about 1% of sales price — more or less. You can do this yourself or a friendly realtor can help run some of these numbers for you. The caveat is rental numbers in the multiple listing service (MLS) are often a little skewed as many landlords don’t advertise on the MLS because they have to pay a commission to the realtors who bring the tenants. The general rule is about one month’s rent in commission to the landlord, and many landlords just don’t want to pay that.

In general, run a few searches to come up with properties in the area. Important items to consider include:

  • Location.
  • Size of property.
  • Age of the property.
  • Condition of the property.
  • Number of bedrooms.
  • Number of bathrooms (full and half).
  • Number of covered parking spaces.
  • Appliances included — such refrigerator, microwave, oven, disposal, dishwasher.
  • School district and its state rankings.
  • Rent per square foot.
  • Pet policies.
  • Single vs. multi-level.
  • Single family vs. townhouse or duplex.
  • Air conditioning (super important in hot climates like Texas).
  • Flooring — such as hardwood, carpet, or tile.
  • Recent upgrades that help your unit stand out. The big ones are updated kitchens and bathrooms although these days, tenants really appreciate having updated electrical, too, as some older properties simply can’t handle all the devices we have these days.
  • On site amenities — such as washer and dryer on premises, covered porch, or fenced yard.
  • Proximity to nearby highways and transit opportunities.
  • Proximity to schools, parks, and other recreational activities.

There are also several free tools online that may give you a starting point.

  • Zillow has a Rent Zestimate that will help give you a ballpark for your unit.
  • Rentomer has both free and paid plans to give rental estimates.
  • Facebook Marketplace sells everything, including homes for rent. When it’s time to advertise, Facebook Marketplace also lets you post your notice in all the “Buy/Sell” groups in various neighborhoods.
Sample search in the 76119 zip code with units for rent.

There is quite a bit of guessing/art to setting a rental price. Say, for instance, units about the same size and location as yours are renting for $1500. However, you have a two car garage and the other properties don’t. It might make sense to start out advertising $1600 for that unit, highlighting that it has covered parking. The same goes in reverse. If you have a property in a great location that’s normally renting for $2000 a month, but you only have one bathroom instead of two, you might advertise at $1800.

The initial price you set doesn’t have to be written in stone. When you start talking to potential tenants, you can always adjust the price depending on factors like the number of applications you receive, if a tenant wants to pay several months up front, or if the prospective tenant wants to sign a multi-year lease. You can always adjust your price a bit once you hit the market depending on the feedback you receive.