How Much Should You Charge for Rent? A Data-Driven Guide

Pricing rent is part science, part art. Too high and your unit sits empty. Too low and you leave thousands on the table. The sweet spot is where you maximize annual income - accounting for both rent amount and vacancy risk.

The Formula

Optimal rent = maximum annual income = (monthly rent x occupied months). A $1,500/month unit occupied 12 months earns $18,000. A $1,700/month unit occupied 10 months earns $17,000. The cheaper rent wins.

Real-World Example

Step 1: Research comparable rents within 1km (check Kijiji, Craigslist, Zillow, Rentals.ca). Step 2: Adjust for your property's specifics (parking, laundry, condition, floor). Step 3: Price 2-5% below the top of the range for faster occupancy. Step 4: Review every 6 months.

The Bottom Line

Mozongi REMA's Opportunity Cost feature shows the gap between your current rent and target rent for every unit. If you're charging $1,300 when comparable units get $1,500, that's $2,400/year per unit you're missing.