Charging for Rent
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Romans922
Puritan Board Professor
It depends on the condition of the house, the area you live in and what houses of similar size/etc are renting for, what amenities are being provided for, etc.
Other than that I found this on a simple google search, "The amount of rent you charge your tenants should be a percentage of your home's market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home's value. For example, for a home valued at $250,000, a landlord could charge between $2,000 and $2,750 each month"
Other than that I found this on a simple google search, "The amount of rent you charge your tenants should be a percentage of your home's market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home's value. For example, for a home valued at $250,000, a landlord could charge between $2,000 and $2,750 each month"
Thank you for the information. Should the rent be divided by the number of people living in the house? Suppose two people rent your home. Would the total rent be divided by two?
Frosty
Puritan Board Sophomore
Talk to some people in your community and get their thoughts on the subject. Even a realtor friend might be able to give you some advice.
As others have said, it depends entirely on the market in which the house is located.
Find out what others are charging in the area for similar homes and go from there.
As others have said, it depends entirely on the market in which the house is located.
Find out what others are charging in the area for similar homes and go from there.
arapahoepark
Puritan Board Doctor
Also depends on whether your state is more for renters rights or property rights. Be sure to look up those 'rights' as well.
Edward
Puritanboard Commissioner
Zillow should give you the rough value of the property. Start at 1% per month of that number, and adjust up for high property taxes and owner's risks in California.
1) Talk to a local real estate attorney that can advise you of the risks as a landlord in California. Make sure you know what it takes to evict someone there before you let them move in. (Some states, I don't recall which ones, require you to pay to store their goods for a period of time after you have recovered the house from them. Other states make it almost impossible to evict, no matter what they do to your property. And if they decide to cook meth, you will lose most of the economic value of the property even if they don't blow it up.)
2) Talk to a local real estate firm about management fees so you can decide whether it is cost effective to have someone else handle management problems and collection issues.
3) Take the Harry Callahan test, and know your limitations. Do you really have what it takes to throw someone out on the street and dump all of their baby pictures and family heirlooms if necessary?
See #1 above, but in most states, you want everyone who is going to be living there fully liable for the full amount of the rent. If one decamps, you don't want to be stuck sitting there getting paid only half the rent. Make it your tenant's problem, not your problem.
Frankly, you couldn't pay me to own residential rental property in a liberal state like Minnesota or California.
1) Talk to a local real estate attorney that can advise you of the risks as a landlord in California. Make sure you know what it takes to evict someone there before you let them move in. (Some states, I don't recall which ones, require you to pay to store their goods for a period of time after you have recovered the house from them. Other states make it almost impossible to evict, no matter what they do to your property. And if they decide to cook meth, you will lose most of the economic value of the property even if they don't blow it up.)
2) Talk to a local real estate firm about management fees so you can decide whether it is cost effective to have someone else handle management problems and collection issues.
3) Take the Harry Callahan test, and know your limitations. Do you really have what it takes to throw someone out on the street and dump all of their baby pictures and family heirlooms if necessary?
See #1 above, but in most states, you want everyone who is going to be living there fully liable for the full amount of the rent. If one decamps, you don't want to be stuck sitting there getting paid only half the rent. Make it your tenant's problem, not your problem.
Frankly, you couldn't pay me to own residential rental property in a liberal state like Minnesota or California.
bookslover
Puritan Board Doctor
Even here in southern California, I've seen houses sit empty for quite a long time with rents above the $2,000 mark. And in nice neighborhoods, too.
Jack K
Puritan Board Doctor
Prices are determined by what the market will bear, not by what the product costs the seller. So the best way to calculate rent on a house is to compare it to the rent on similar properties in similar locations. A realtor may be able to help you get that info, but I would start with the classified ads in the local paper or with online rental listings.
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