When determining the rent schedule for a property, one must consider a number of factors. Quality of the building as well as the economic and market conditions of the area are some of the important ones to keep in mind. "A realistic rent schedule should be prepared and administered forthrightly by the property owner or manager. Rental rates that are unrealistically high result in vacancies and serious cash-flow shortages, while rates that are too low minimize the investment's profit potential". Other things to keep in mind are location, as well as amenities that your property may have. "For example, a building with 10% of its total area devoted to nonproductive space may have narrow hallways and a small, unimpressive lobby. Although the efficiency rate for this structure is higher than that of a building with a larger lobby and wider hallways, the rental rate might be lower, reflecting a less prestigious building. Thus, the achievable gross rents would be less than those for a comparable structure with a lower efficiency factor". Establishing rent is important for ensuring that the property will yield enough profit to make a sufficient return on the initial investment. Should your rent be too high, then you will struggle to fill space and will not make any money. Should it be too low, then the property may not cover the investment nor will it take care of any operating expenses for the property.

editor), D.S.P.D.E.J. (. (2019). Essentials of Real Estate Investment Twelfth Edition (12th Edition). Kaplan Professional Education. https://libertyonline.vitalsource.com/books/9781475485417