Maximizing your rental income begins with an accurate rental rate

You may ask yourself, “Shouldn’t I ask for as much rent as I want, or simply ask for what I need to cover my mortgage payment and a little more?” The simple answer is “no”. The reality is, if your rental is overpriced, the property will experience a longer vacancy time and cost you money in terms of lost rent. On the other hand, if you are asking for too little rent, you also lose money in opportunity cost. Ideally, you want to be right in the sweet spot of the current market value to achieve your maximum rental income. And by the way, the current rental value has no connection to your mortgage payment. The market is only concerned about the rental rate of other similar properties.