How to properly price my rooms for rent

Question

I own a newly built 4 bedroom town house I’m looking to find tenants now. My question is how do I determine how much my units are worth.

Preston Dean · Answer

Hey Mark, great question!

To get a starting point I would suggest checking what some townhomes are renting for on Zillow. If your looking to not pay a mortgage at all then I would take your mortgage and just divide it by 3 and charge each room that amount

IE.

$2400 mortgage divided by 3 = $800/door and considering your in Miami that is relatively cheap rent. AND considering its a new build your going to be able to get more rent for those rooms.

Jake Andronico · Answer

@Mark Anthony

Generally Facebook will be the best place to research potential comps. Also, simply posting a price and seeing what kind of feedback you get can work as well.

Who rents rooms in your area? Why would they want to do that as opposed to getting a 1 bedroom apartment/studio? What's likely the duration of their stay? Age? Do they want it furnished or likely have furniture?

Once you have an idea of your likely avatar of a tenant you can market your rooms accordingly in the future. You may have to work backwards initially and market your property first to find that avatar and see patterns.

I've rented by the room to students on two homes in Reno, NV and it's completely changed my life.

Great strategy.

Best of luck to you!!

John K. · Answer

Facebook Marketplace is likely the best place to look for comps, but ultimately you may need to simply use trial and error to find the right price point (listing the rooms on the higher end and working the price down until you get interest). I would also consider whether you plan to rent the rooms furnished or unfurnished, as that will affect the price as well as how long the tenants are likely to stay.

Ecaterina Katerina Morosan · Answer

Hi Mark, where in Miami?

How to properly price my rooms for rent

How to properly price my rooms for rent

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