One of the reasons why people are getting into the rental business is the income they can get from it. Although it’s not as easy as it seems, more people are becoming interested in being landlords. Let’s face it. A place to live in is a basic need. There are plenty of customers for this business. But of course, the rental price must be affordable.

Setting a rental rate is a vital factor to consider. If it is priced too low, the landlord may not get enough money to cover the expenses. On the other hand, high rental rates can drive away potential tenants. Landlords should not decide on a price without weighing in on what they have to offer. The rental rates will depend on the type of property, location, and amenities.

Licenses and Permits

All businesses, including rental, should have the required permits to operate. Having a proper license makes the business legitimate and legal. It also means that the property has passed the necessary inspections and is safe for tenant occupancy. Some landlords do not want to obtain licenses because once they officially become a business, the income is taxable.

A good landlord, however, will acquire all the required licenses. It may vary depending on the location, so knowledge about the state laws is significant. A landlord is not allowed to ask for rental payment if he does not have a license.

Health and Safety Codes

All landlords must provide a safe environment for their tenants. To achieve this, they must follow the building codes in their state. Tenants have the right to a safe home because they are paying for it. How will you expect that a tenant will pay a high rental price if the property has no security devices and safety hazards are present?

Landlords should make sure that the price is worth every penny. A tenant will willingly pay more for a property with surveillance cameras, carbon monoxide detectors, and security personnel.

State laws

One of the things that can help determine the rental price is the local state laws. In the U.S., some states have municipalities with rent control regulations. Those municipalities are found in New York, New Jersey, California, Maryland, and Washington. In some states, the local government is not allowed to enact rent control measures.

The state laws also have guidelines about how much a landlord can charge for security deposits, application fees, and late fees. I cannot emphasize this enough. Knowing the local state laws is a must for every landlord and would-be landlord.

Security Deposits

Aside from the rental payment, landlords will also ask for a security deposit. It is an amount of money set aside if there is a need for repairs in the property or unpaid rent. After the lease ends, the landlord will return the remaining amount to the tenants.

Setting the amount for the deposit will also depend on the state laws in your area. Some states have a maximum amount on how much a landlord can charge. Sometimes it is worth a month’s rent or two month’s rent. In states like Florida and Georgia, there is no maximum amount.

A landlord should determine the rental price before the property hits the market. Once you post the property listing on Padleads, tenant applications will start to come in. You can also syndicate your listings to other web pages, which will mean more people will see them. You should have all the necessary information, including the rental price, by this time.

It is also important to remember that the location of the property matters. The rental prices in every state are different. If you must know, the most expensive rentals are found in California. Setting the price will either make or break a landlord’s business.