How much can I charge for rent on a new build spec home

Question

I'm wondering what sounds reasonable to charge for the two extra rooms in a recently purchased new build spec town home. The townhome is across the street from the metro rail in Austin, Texas.

Details:

Square Footage: Square Footage

1st Floor: First Floor

2nd Floor: Second Floor

Here's a link to rentometer for 3 bedroom apartment/townhome rentals in the vicinity of mine. Rental Comparables

What do ya'll think this is my first home buy and also first landlord experience, so any tips or things I might want to know I appreciate. Also thinking about AirBnB for one of the rooms.

Omar Khan · Answer

@Daniel Taki The average from Rentometer shows up as $1,678. If these are only two extra rooms with shared utilities/amenities (bathroom, kitchen, living room or some combination). IMO, your best bet to target would be in the $750 range. I say this only because the kind of tenant you will be attracting will, likely, cause more wear and tear (less permanent). You want to account for that.

Daniel Taki · Answer

Very good point, thanks a lot @DavidIvey I didn't even think to look at the 1 bedroom efficiency units.

David Ivy · Answer

@Daniel Taki

Two 3/2.5 units have leased through the MLS in that community over the past 365 days. It looks like rents are currently around $1,650/mo. for your unit, as Rentometer also suggests. One unit has been on the market 31 days asking $1,695/mo.

There are several apartment complexes with 1 bedroom and/or efficiency units for around $900/mo. (utilities not included) within a one mile radius. That will be your competition. So, you'll need to market well enough below those to overcome the objection, "Well, at that price, I might as well pay a little bit more to have my own place and not have to live with two others."

Daniel Taki · Answer

@Omar Khan yeah that makes sense.

Daniel Taki · Answer

Thanks Jordan

How much can I charge for rent on a new build spec home

How much can I charge for rent on a new build spec home

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