How Do you Declare Rent amount?

Question

Hey everyone,
just wondering how you would find out what to charge for rent, which is obviously what you subtract from expenses to find your cashflow.

Is it derived from similar properties in the area?

thanks

Will Barnard · Answer

Just as you find market value for the value of your home if you wanted to sell (MLS comparisons) you do the same for rentals. Look on the MLS for comparables in your area and make sure to visit them to be sure you have at least what they have.

Will Barnard · Answer

You can alos contact some local property managers as they would give you their opinion as to the rental value of your property and they also have comp data.

Scott M. · Answer

And while your looking - be honest with yourself.

Make sure you look at any photos - read descritpions of any renovations that have been done and make sure your honest as to how it compares with your home.

If you do use CL then be sure to drive by to see the hood and how it compares to where your home is located.

A lot of people on CL only show their home and they only show a cropped photo - no sense of the area.

After you look up a few ads and do a driveby it should be pretty obvious to you.

T. Desmond D. · Answer

Craigslist is great for research. Go to Craigslist.org and search for similar rental units in your local market. Analyze the rental rates of the rental ads in the results.

Rental rates are primarily determined by the market.

Dave Kennedy · Answer

The Market determines rent.

You'd be able to find market rent by calling on rental ads of similar properties in your market or scanning craigslist to get a ballpark idea.

Generally in my area you are paying 1600-2500 for a 2 bed room in decent condition.

Could be an entirely different story on the other side of town.

Michael Shadow · Answer

The rent has nothing to do with what your expenses are.  Your rent is determined by what the market will absorb.

You need to go look at some rentals that are similar to the one you are offering.  Find out what they are renting for and what utilities are included and set your rents with the current market.

-Michael

Jon Holdman · Answer

We have some tools here that may be useful.  They tend to be a little on the high side in my area.  Look at newspaper ads, craigslist, and call for-rent signs in the same area.

Around here a decent 2 BR SFR will rent for about $800 on either side of town.  Despite the same house costing 50-100% more on the west side than the   east side.  Go figure.

How Do you Declare Rent amount?

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