How to Set the Right Price for a Rental Apartment?

Good question. But what is the right price for whom? As an owner, you always want to earn a higher income from your apartment, and a tenant wants to pay as little as possible. But how do you strike a balance so that you find a good tenant quickly and at the same time earn sufficient income?

Setting the right price determines how successful you will be in the rental business.

Check real estate portal listings

First, you need to get an overview of the market situation. The first and best recommendation for this is to look at rental listings for similar apartments on real estate portals. We at kinnisvara24.ee have done everything to make filtering listings by location, size, number of rooms, etc. as simple as possible. Monitor listings over a period of time to see which listings disappear faster and which are harder to find tenants for.

Look at other listings with an eye to whether your apartment is in worse or better condition than others.

What area are we talking about?

Think about what area we're talking about and how wealthy the local population generally is.

Check how many rental apartment listings for that area are on real estate portals. If there are very many, then it's possible that you need to ask for a slightly lower price than most to rent out the apartment faster.

Consider other expenses too

Read other rental listings carefully and check what the average monthly utility costs are for the apartments. What is the condition of your rental space compared to these? Are your apartment's heating costs higher or lower? Perhaps you should adjust your rental price accordingly?

Hire an agent

If you're not very familiar with prices yourself and don't want to give away your apartment too cheaply, we recommend you hire an agent. He or she should definitely be a professional real estate agent who knows the rental market and has solid experience in mediating rental apartments. They also have an eye for finding you a long-term and good tenant among interested parties. Agents simply have that ability. However, you should definitely make the final decision yourself.

Perhaps you can find your agent here >>

Long-term rental or short-term rent

Also think about whether you want to rent out the apartment permanently, which involves about a year-long lease and agreed price terms, or whether you want to try your luck with short-term rental, which you can also do through kinnisvara24.ee. In the latter case, you can charge a significantly higher price per night and rent out even your own home if you're going on a trip yourself. Some people even earn travel money this way.

Another option is to do both, which is practiced for example in vacation areas. On a long-term basis, the apartment is rented out from autumn to spring (for example to students) and in the summer months, the apartment is rented out for a few days at a time, which allows you to earn much higher income from it.

What is the best time to rent out an apartment?

Prices tend to rise when there are more interested parties. In Tallinn, for example, in August when students start coming to school, and in Pärnu before summer when vacationers are making their summer plans.