You are thinking of renting out your home in Los Angeles and are not sure how you should price it. This is a little more complicated than if you were selling it.
When you are selling a home in Los Angeles you have a basis from which to work. That would be comparable sales (comps). Your real estate agent will look at what has sold in the general area of your home. These would be homes of a similar size, features and condition and that is what a buyer is going to be looking at also. It is also what the lender’s appraiser is going to be viewing when it comes to approving the buyer’s loan. They will not loan more than the value of the home as they determine it.
When it comes to a rental, however, there is no lender. Many of the higher-priced rentals are given to Realtors® so there will be some basis of comparison. However, since there is a shortage of good rental properties on the market you may be tempted to set your own price. Maybe someone will pay it.
Well, if you can afford to have your home sit empty while you test the market, then by all means see how much you can get. But, if it is overpriced it will sit. Renters are going to be looking at the same comps that your agent showed you, and they are going to wonder why you are asking so much more.
With your Realtor® you will need to compare your property with others in the neighborhood that rented. Be subjective. How does it compare? If you were a renter what would you be willing to pay for the property after seeing the price of others? It is difficult to do, but if you want to rent your home in a short timeframe you need to be realistic.
Working with a Los Angeles Realtor® will help you determine the right price. And in addition, they will handle the entire rental process for you. They will check the renters’ credit-worthiness and ability to perform the terms of the lease, and they will handle all the necessary paperwork. Then you can sit back and collect your rent.