Setting the right rental price is one of the most important steps when you want to rent out your property. If the price is too high, you risk being without a tenant for a long time, which means loss of profit. If it’s too low, you’re missing out on potential earnings. So how do you find that golden middle path with an emphasis on selecting a serious tenant?

1. Market research

The foundation is understanding what’s happening in the rental market in your area.

• Online portals: Browse listings on the largest real estate portals (such as Nehnutelnosti.sk, Reality.sk, Bazoš.sk) and search for similar properties in your neighborhood or nearby area. Focus on those with the same number of rooms, similar area, condition (new construction, renovation, original state) and equipment.
• Location, location, location: The price varies extremely depending on location. Is your property close to public transport? Does it have good civic amenities (shops, schools, parks)? Is it a quiet or busy area? Every detail plays a role.
• Current offers vs. rentals: Pay attention not only to the prices at which properties are offered, but also to those at which they are actually rented.

2. Consider your property’s characteristics

Every property has its specifics that affect the price.

• Size and layout: How many rooms does it have? What is its total usable area? Does it have a logical and functional layout?
• Condition and equipment: Is it after a complete renovation or in its original state? Is it furnished, partially furnished, or unfurnished? What appliances are available (air conditioning, washing machine, dishwasher, microwave)? A new kitchen and bathroom are a big plus.
• Exterior elements: Does it have a balcony, loggia, terrace, or basement? What about parking – own garage space, parking spot, or just public parking?
• Floor and orientation: On which floor is it located? Is it oriented toward a direction that provides enough light but not overheating? The view can also affect the price.
• Common areas and building: What is the condition of the apartment building? Are the common areas clean and maintained? Is there an elevator in the building?

3. Don’t forget operating costs

The rental price usually consists of two parts: rent (for you) and utilities and fees (for the manager and suppliers).

• Deposit amounts: It’s important to have an overview of monthly advance payments for utilities (electricity, gas, water, heating) and services (building management, waste collection, cleaning of common areas).
• Internet and TV: If internet and TV are included in the rental price, it’s more attractive for the tenant and you can afford a slightly higher price. Otherwise, the tenant must count on additional costs.
• Overhead costs: Some landlords prefer all-inclusive rent including all utilities, others separate rent and separate advance payments for utilities with annual settlement. Clearly specify this in both the advertisement and the contract.
• Mortgage: If you have a mortgage on the property, it increases your monthly costs. Keep this in mind when creating the price.

4. Price setting and strategy

When you have all the information, it’s time to determine the price.

• Competitive price: Based on market research, set a price that is competitive but also reflects the quality of your property.
• Small reserve: You can try starting with a price 3-5% higher than your bottom line to have room for negotiation if interest is low.
• Seasonality: Demand for rentals is often higher before the start of the academic year (summer, early autumn). If you’re renting during this period, you can afford a slightly higher price.
• Speed of rental: If you need to rent the property as quickly as possible, you may have to slightly reduce the price. If you have time, you can wait for the right tenant at a higher price.

5. Flexibility and evaluation

The market is constantly changing, so be flexible.

• Monitor interest: If you’re getting little interest, or no one is contacting you, consider adjusting the price. It’s better to rent at a slightly lower price than to have the property empty for a long time.
• Feedback: Ask interested parties what they think about the price and if anything is missing in your property. Their feedback can be valuable. Since they are currently looking for housing, they can tell you exactly what the interest is like during this period, average prices, or equipment that properties provide.

Setting the right rental price is an art that requires a combination of research, objective assessment, and flexibility. However, with a conscientious approach, you’ll find the right balance between profit and quick rental. If you’re interested and want to rent efficiently, join us.