How do you know when you've set the rent too high for your Detroit Metro rental property? If your property sits vacant or you experience frequent tenant turnover, you might need to lower the rent.

Setting the appropriate rental rate for your properties is one of the most important parts of being a successful landlord. Your properties lose money when the rent is too low—or too high. 

How do you know how to set the right rental price? What can you do if it's too high? Let's look at the impact of your property's rental price and what to do if you need to adjust. 

A rental market analysis (RMA) helps you assess the investment potential of a property within a target area. When conducting a rental analysis, you follow a simple mathematical equation:

• Figure out the adjusted price per square foot of comparable properties in the area.

• Multiply by the square feet of properties for sale. 

How does this simple equation help? It helps you determine if the average rent in the area is higher than the average price of any available properties. If so, then the market is favorable.