Rental Property Investor · Philadelphia, PA · Member since 2018 · 35 posts · 6 votes
I know when determining what you’re going to charge for rent it’s usually 1% of the purchase price but how do you determine that if you have 3 or 4 units in the home? Do you divide it by the amount of units or is it another method people use? Thanks in advance for the replies !
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Ray Pryer rental rates are market driven. It has nothing to do with a percentage of the property value. Research what units that are similar to yours are renting for, and you should have a good idea of what you can ask
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Ray Pryer rental rates are market driven. It has nothing to do with a percentage of the property value. Research what units that are similar to yours are renting for, and you should have a good idea of what you can ask
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
8y
Like @Jason D. said, rents aren't based on the purchase price of a property. Doesn't matter the type of property. It's primarily market driven, so you have to research your market. Here's an article that should give you a starting point and help you: How to Determine Fair Market Rent.
@Ray Pryer Craigslist is underrated as well. You can search within X miles of a zip code, enter search filters identical to your units (#beds, bath, etc.) and quickly browse the asking rents for all similar rentals nearby.
Rental Property Investor · Philadelphia, PA · Member since 2018 · 35 posts · 6 votes
8y
@Scott Weaner yeah I tried that but sometimes it confuses me ! Like it’ll say in the description House is a triplex but it only says 4 beds 2 baths or something like that. Like how do I know how many are in each unit? Just have to tour?
Rental Property Investor · Brentwood, CA · Member since 2018 · 5 posts · 3 votes
8y
@Ray Pryer Call a few local property management companies and ask them their opinion on what they feel each unit would rent for, they could gauge that pretty well.
@Scott Weaner yeah I tried that but sometimes it confuses me ! Like it’ll say in the description House is a triplex but it only says 4 beds 2 baths or something like that. Like how do I know how many are in each unit? Just have to tour?
Are you looking at the rental section? It wouldn't matter if it's in a triplex or quad. Just focus on comparing same type of apartment with similar square footage in a specific area