We have a nice home with a pool. Aside from "what the market can bear", are there giudlines as to what the value of the rent can/should be?
2006-09-03 12:28:38 · 8 answers · asked by radicalx@sbcglobal.net 1 in Home & Garden ➔ Do It Yourself (DIY)
Just look in ur weekly pennysaver or newspaper and see the comparables.
2006-09-03 12:34:06 · answer #1 · answered by Twinklestar 6 · 0⤊ 0⤋
The monthly rent you charge should cover:
1. The mortgage note.
2. Taxes and insurance (unless insurance is included in mortgage).
3. Enough left to save in a small fund to be used for repairs and upkeep (painting, minor repairs, etc.) -- say, $50 - $100 a month. This will come in handy if you get hit with a repair bill for a plumbing problem, etc.
Open and maintain a separate checking account for income from the rental. Pay for repairs, manage rental deposits, etc., from this account. This will make your bookkeeping much easier.
2006-09-03 13:21:55 · answer #2 · answered by sparticle 4 · 0⤊ 0⤋
Is the existing home paid off? Are you going to try to carry 2 mortgages?
If the existing home is not paid off, establish the rent at a minimum of what your mortgage payment is on that home. Other than that you best bet is to scan the classifieds and see what homes in your area like yours are renting for.
2006-09-03 12:34:09 · answer #3 · answered by dta_stonecold_dta 3 · 0⤊ 0⤋
Read the classifieds, look at a few similar rentals and call a realtor, but don't hire one just for renting. You might consider a property manager, however, if you're moving out of town.
2006-09-03 12:34:16 · answer #4 · answered by beez 7 · 0⤊ 0⤋
Probably 10-12% of the market value of the house. You do not just need to cover the cost of the mortgage, you also need to cover the insurance and taxes on it.
2006-09-03 12:56:14 · answer #5 · answered by Michelle G 5 · 0⤊ 0⤋
Check with a local property managment company. They will know current market values in your area. Its not a bad idea to consider them to manage the property for you. I have several properties and after many years of managing them myself I choose to hire one and to this day I have no regrets. I also have lower blood pressure and more free time.
2006-09-03 12:57:10 · answer #6 · answered by dreamwever4u2 5 · 0⤊ 0⤋
in australia the general rule is to have the property valued say your property is valued at $ 185.000. you charge $ 185 per week .if your property is valued at $200.000 you can charge $200 per week
2006-09-03 13:05:52 · answer #7 · answered by clrdanlob 3 · 1⤊ 0⤋
Being that its your house you can ask what you want.Normally you charge 10 percent more then your mortgage payment or what it would be
2006-09-03 12:34:25 · answer #8 · answered by Dave 3 · 0⤊ 0⤋