How do I calculate how much I should rent out my item for?
Deciding on what to list as your item’s rental fee can be a tricky challenge, but never fear! Your personalized guide for this decision is here! We’ve looked into it, and found a few helpful tips and tricks for you. Remember, this isn’t a set of rules; it’s a helpful guide for you and your rental unit.
In addition, read about our friend RNTR-Bob to see how he came up with rental pricing for his new lawn mower.
5 Easy Steps to Properly Price your Item for Rent
Step One: Compare your item to the others that are listed near you.
This isn’t a comparison of who’s grass is greener.
Are you listing a newer or older object? How does it compare to the others on the RNTR rental market? If it is newer, then you can generally list the item a bit higher than the others. Whereas
if it is older, you can reach more people when you list it more reasonably.
Step Two: Estimate the object's retail value. How much did it originally cost?
This will be very useful when deciding how much to charge for a short-term rental, as outlined in our Rental Pricing Guide below.
If you can’t remember, make an estimate!
Step Three: Calculate a rental fee considering these numbers below.
According to industry norms, it is suggested to vary the rental price based on the duration of the rental and the specifications of the item being rented.
Check out this helpful guide below!
| Length of Time | % of Retail Price |
|---|---|
| 1 Day | 3–6% |
| 1 Week | 8–12% |
| 1 Month | 18–22% |
Step Four: Compare the rental fees calculated above with other listings in your area:
Then use your best judgment to adjust your pricing to what you feel is right for your item and area you will be renting.
You can look at the first numbers you found while searching for listings in your area. Then compare your item to others that are available for rent. After comparing these numbers with your own, use your best judgment to set a price you feel comfortable with. Choose a price you think your renters will be comfortable with too.
Step Five: Post your item in confidence!
You’ve done your research and you know your item best, so listing the object at the price you have is a great plan. It’s time to get that item rented out!
Our Friend RNTR Bob: An example!
Step One
Our friend RNTR-Bob wants to rent out his new lawn mower (by the day) to his neighbors using RNTR. Listingsin his area generally range from $15 to $25 per day.
Step Two
RNTR-Bob bought his new lawn mower for $475.00. Knowing this will be really helpful for checking on industry standard rental fees for his listed item, as shown below.
Step Three
Knowing that he was able to rent it out, RNTR-Bob decided to calculate the percentages below.
| Length of Time | % of Retail Price | % Used to Calculate Cost | The Math | Decided Rental Fee |
|---|---|---|---|---|
| 1 Day | 3–6% | 5% | $475 x 0.05 | ~23.75 per day |
| 1 Week | 8–12% | 10% | $475 x 0.10 | ~$47.50 per week |
| 1 Month | 18–22% | 20% | $475 x 0.20 | ~$95.00 per month |
Step Four
Using the numbers he calculates out, as well as the ones that he generall found on other RNTR listings, he decided to list his item reasonably in the middle of where he saw other listings priced at online. This is what he decided.
| Length of Time | Decided Rental Fee |
|---|---|
| 1 Day | $20 per day |
| 1 Week | $45 per week |
With others renting out his mower, he decided to only rent it by the day or week, and not an entire month at a time.
Step Five
RNTR-Bob posted his mower for rent, and was able to rent it out for 6 weeks of the mowing season and 7 additional days, totalling around $410 over one summer.
While still being able to use it between rentals, he was able to nearly cover the original cost of the mower. He looks forward to additional summers earning more money and helping out his neighbors at the same time. Winning.
Disclaimer: These are only suggestions based upon relative market pricing models and a bit of common sense.