How to set the right rent price for your property

Whether you’re new to property management or just refreshing your approach, this guide will show how to set reasonable and sustainable rents in your area.

A rent amount that’s too high can stress tenant affordability, potentially leaving the property vacant and cutting off landlord and property management cashflow, while one that’s too low could leave money on the table. Either way, money lost or opportunities missed could threaten your business relationship with landlords.  

So how do you hit that sweet spot? Research, research, research!

Start with the market

Your first step should always be to understand what similar properties are renting for in your area.

This means identifying rental properties of comparable size and features to establish a baseline price, and then adjust from there.

Keep in mind that rentals in large cities or economic hubs typically command premium rates due to higher demand, job opportunities, and amenities. On the flip side, properties in smaller towns may need to be priced lower to attract tenants.

There’s also seasonality to consider: rental demand tends to surge in the spring and summer when people are more likely to move, then flatten out in the winter months, which could mean adjusting expectations – or offering incentives – to get leases signed.

Those are the basics, but other factors play a part too, as experienced property managers know.

Read the demand signals

If your property offers features such as updated appliances, an on-site gym, or proximity to top-rated schools or popular shopping districts, these are strong selling points that can justify a higher rent.

Similarly, the number of bedrooms can influence rent price. Studio and one-bedroom units generally attract singles, while two-bedroom or larger properties appeal to couples or roommates, often increasing household income and the rent you can charge.  

Where to find reliable market data

Not sure where to start your research? You’ve got options:

• PayProp’s Property map – If you’re a PayProp user, this is a big advantage. Our built-in Property map gives you a bird’s-eye view of your portfolio via Google Maps. You can quickly identify your most popular neighborhoods, compare rents across your managed properties, and keep your pricing strategy consistent across the board.

• Listing sites – Rental platforms like Zillow (or regional equivalents) are a goldmine for comps. Check active listings for similar properties and note price differences based on location, size, and amenities.

• Industry reports – PayProp’s monthly newsletter, PayProp Insights Canada, includes a comprehensive national housing market update with average rental prices and movements highlighting opportunities. It's a helpful benchmark for your pricing decisions.

• Peer networks – Online property management forums and local real estate groups can offer practical insights into what others in your area are charging.

Plan for hidden costs

Don’t set rent solely on what prospective tenants are willing to pay, make sure it also accounts for what you or your landlord will spend.

Maintenance reserves, mortgage payments, property taxes, and insurance should all factor in when determining the rent amount. The goal is to make sure the landlord earns a return on their investment while you maintain room for your management fee.  

Read the market’s response

If your property isn’t getting interest (few applications or inquiries) it could be priced too high for its location, condition, or amenities.

Rental pricing isn’t something you set once and walk away from – it’s a moving target. And this guide will help you hit it every time, with rent amounts that satisfy both landlords and future tenants.