How much should I be charging for rent?

6 Replies

I am currently renting out a 1000 square-foot, two bed, 1 bathroom duplex, in Denver, CO to a great tenant that’s been there many years. I am only charging $1,200 a month due to the place being outdated (1960’s) but this seems severely below market. What should I be charging?

Thanks much-Brian

Put it on craigslist for $2k. If you don't get any responses, then start dropping it $100 per week. Now isn't the best time to rent as I'm sure you know. Location will be a huge factor as well. 

@Brian Milton , you definitely need some type of comps to determine this.  Unfortunately rent is extremely hyper-local, you could see a difference of rents from neighborhood to neighborhood.

If you do the comps manually, make sure you identify similar rentals to yours.  This should give you a good idea.  If you want to keep the tenant but raise their rents, I would even suggest showing them the market rates but sell them on a discount.

@Brian Milton

The answer depends on a lot. Where is it located? What kind of condition is it in. Updated a few years ago with new kitchens, bathrooms, SS appliances, flooring and paint? Updated 15 years ago and looks clean but not modern? Hasn't been touched since the 1970s?

The rents could vary wildly between $1200 for a far-flunt 2br unit that hasn't been updated to $3000 for top of the line in a killer location. 

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