Factors to Consider When Pricing a Room to Rent

Factors to Consider When Pricing a Room to Rent

       This article will be exploring the different factors about rooms that one should consider when pricing their room. Of course, there is no exact number as to how much to price for each factor that is included in the room, as these differ depending on the market you are in. 

Space

       The first and most obvious factor is the square footage of the room, a basic unit of measurement widely used across the industry. In fact, this may be the variable most correlated to the price of the room, due to its universality. In other words, what I am trying to say here is that the more space the room has, the higher the renting price will be. 

Neighborhood

        Another factor widely used in the pricing of property is the geographic location of the room or the neighborhood. This one is quite self-explanatory as well, the nicer the neighborhood, the higher the price. Hence, if you end up in the same situation as my colleague Alyssa, where she ended up on the border of a dangerous neighborhood, a lower price for the rent would make sense. Similar to the space, this is a factor that is quite inflexible, as it is challenging to just change neighborhoods or the amount of space a room has.

New/Old Building

        The age of the building also matters for the pricing of the room. After all, people usually like to stay at newer buildings than old ones due to the factors brought up in this article. This is because newer buildings not only give a sense of modernity and cleanliness, but also provides a sense of security, as older buildings are at higher risk of accidents like fires, or natural disasters like earthquakes. Hence, before renting out your room, you should also examine the structure of your house, and the risks it may have if it is old, so you can ensure the safety of your tenants. 

Amenities

        This is a vague section, as it includes many factors, but it is usually the one consumers will more easily focus on, which makes them extra important if you want to generate demand. Additionally, this is a factor that you have more control over. Hence, if you are looking to increase the price for your room, this is one of the ways you can do it, assuming the amenities you will be adding are demanded and justify the higher price for the rent. For example, there are elements like washer/dryer and AC/heaters that you could include with the room, which would increase the demand and the price of your room. Maybe you are able to give them access to other parts of your house, such as a pool, a gym, or a great kitchen with updated appliances. You may offer parking. You may also offer a  pet-friendly environment, which would definitely increase the prices due to the higher risks of property damage and the fact that fewer places offer this. There may also be other subjective components like the flooring or the wall of the rooms. Of course, the demand and the value for each of these amenities will differ depending on your location, time, and the demographics of your tenant, as different people will have distinct needs. There may also be tougher elements to control, such as a balcony or even a great view. Nonetheless, this is the factor in which you can get creative, and research your tenant demographics and neighborhoods to see what amenities are highly demanded and hence add value to your room. As stated previously, all these factors will be valued differently per location, so there are no exact guidelines as to how much more to charge for the improvement of any of the factors.


        All in all, there are definitely many other factors to be considered, even within the amenities section. However, this article has covered the main ones for you to think about. In fact, you could spare yourself a headache, and facilitate this process by using Rentalios to find a base you can build a price from. I hope this article and Rentalios has helped you determine the pricing for your room, so you can maximize your property.


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