How much should I charge for rent on a 2 Bed 2 bath 50k house? If renter pays utilities as well?

7 Replies

I recently purchased a house rehabbed the living room and water damage and now the house is ready to be rented out but how much should I rent it for? It is close to a grocery store,  school and a bar and and it is valued at around $50k and I am wondering what is reasonable rent. it has 2 floors 2 bed rooms a living room dining room and kitchen. The house is 1500 sq ft and it has close to half an acre of property. everything is brand new and finished. brand new stove and rerigerator. new sink toilet and bathtub. would $350 a month be to low or would $850 a month be to high? 

I have seen some similiar 3 bed 2 bath houses going for as high as 1500 a month without utilities or 1250 with with utilities. so i am assuming 850 would be in the ballpark of what I should charge for rent but I want the renter to also pay utilities so what would be a fair price?

@Cory Mickler

Congratulations on the purchase. I'm looking for another unit myself. 

I'm not familiar with your area at all but I have a few simple suggestions. You need to research what your market rents are today. This is the typical pricing question that all marketers face. 

Here's how I would start figuring it out:

1. Check Craigslist and see what other people are asking for similar properties close by.

2. Check the local newspaper and classifieds for similar listings.

3. Visit rentometer.com, a rent comparison website.

4. Go check out local rentals and pose as a potential tenant. This way you can see first hand what the competition looks like. 

At the end of the day, the idea is to offer a better deal overall. 

I haven't read any real estate specific books on marketing rental properties but any marketing book on the concept of pricing and value will give you good ideas.

Good luck!

Loren has given you good advice. I have several comments or suggestions.

First, if you intend to buy a property, fix it up and rent out, determine your potential rent before you buy.

2nd. It sounds like this is a two bedroom, one bath house. At 1,500 this house is quite big. Is it possible to make this a 3 bedroom and/or a two bath. That would sure increase the value and the rent you could charge.

Good Luck.

Bill

Sorry, I see in the heading that this is already a two bath.

Bill

I'm not bashing here, but how did you work the numbers on the house if you didn't know what it would rent for?

When I have a house with tenants moving out, I get out and drive around the area and start calling any houses I see a for rent sign in front of.

andy

Hey   @Cory Mickler, I've had great success by using craigslist.  I just search the town i'm renting in and find places with the same # of beds and put them all in a spreadsheet. Once I have 10-20 I take the average and look at the top rents and see what their offering. I like to get top rents so I make sure our properties are in line with the top places in the area. Then to rent it quick I offer the same amenities as the top rentals a hundred or fifty dollars less per month.

Works like a charm.  Goodluck! 

Originally posted by @Loren Whitney:

@Cory Mickler

Congratulations on the purchase. I'm looking for another unit myself. 

I'm not familiar with your area at all but I have a few simple suggestions. You need to research what your market rents are today. This is the typical pricing question that all marketers face. 

Here's how I would start figuring it out:

1. Check Craigslist and see what other people are asking for similar properties close by.

2. Check the local newspaper and classifieds for similar listings.

3. Visit rentometer.com, a rent comparison website.

4. Go check out local rentals and pose as a potential tenant. This way you can see first hand what the competition looks like. 

At the end of the day, the idea is to offer a better deal overall. 

I haven't read any real estate specific books on marketing rental properties but any marketing book on the concept of pricing and value will give you good ideas.

Good luck!

 That single post by @Lauren Whitney is probably one of the greatest answers I've ever heard on this site. I just copied and pasted it onto a note on my computer. Rentometer and Craigslist were on my mind, but posing as a tenant is BRILLIANT!

Do yourself a favor and follow up with what this gentlemen posted! :)

Just for the record, I heard the pose as tenant idea from someone else here on BP. It's worked well for me personally.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.