My wife and I are moving and would like to rent out our home. We aren't looking to make a lot of money off it. If my mortgage is $745/mo., how much should the rental be?
2007-01-02 07:16:07 · 8 answers · asked by nickacarroll 2 in Business & Finance ➔ Renting & Real Estate
The amount of rent you can/should charge has nothing to do with the amount of your mortgage payments. It should be entirely determined by the prevailing rates for similar houses in your area, which you may be able to ascertain online. If you are moving out of the area, you'll need an agent to manage the property, and he or she can help you determine how much to ask. If you will be staying in the area, then you're probably better off managing it yourself.
My recommendation is to be extremely picky in choosing a renter, and to charge them a bit less than the going rate. That way you can maximize your chances of keeping them there for several years. Turnover always costs you money.
Good luck.
2007-01-02 07:28:21 · answer #1 · answered by Dave 4 · 2⤊ 0⤋
You really should base your rent on the value of the home or the rents in the area, rather than your mortgage amount. What if you bought a really expensive home and paid 50% down on the house (I know that is unlikely), but then you would rent the house for half of what it should/could be rented for.
So, if you home is worth $130,000 rent it for about 1% of the value or $1300 a month.
If there is an issue with the amount of rent you can collect in the area where the house is, charge as much as possible... if you can't rent it, start to go down on the rental price until you find a tenant.
Make sure you get a large deposit (as much as a month of rent if possible) to cover cleaning after they move out, and any damages.
2007-01-02 15:32:15 · answer #2 · answered by John Stamos 3 · 2⤊ 0⤋
1st I have to ask u what is the going rate in ur area? If u dont know nows the time, call homes within ur area aprox. a 5 mile radious that r for lease and r comparable to ur home. Ask as if u were a potential renter, get as many as u can thru the newspaper, and cking for rental signs and calling. This is going to give u the best way to know the market in ur area. This is not a part of ur question, but I hope it helps, please do a good backround ck. on ur applicants, if u can drive by where they live now to see how well they maintain the property. Do a extensive rental history check, I know if I was to rent out my home I would want at least 5 yrs rental in one place, that is verifiable, all this can save u alot of hassles later, not to mention u do not want extensive damage done to ur home, it will cost u so much! Believe me when I tell u, u would not believe what can be done to a property in 30 days!!!! Hope I have helped, HAPPY NEW YEAR & BEST OF LUCK
2007-01-02 19:22:20 · answer #3 · answered by bodacious baby 7 · 0⤊ 0⤋
You will need to cover expenses such as homeowners insurance especially liability. Add in the property taxes and other expenses before deciding what the rent should be. Check the local newspapers and make sure you are in the range of local properties that are similar to yours.
Good luck
2007-01-02 15:24:32 · answer #4 · answered by SJR 3 · 0⤊ 0⤋
The rent is determined by what the market will bear not what you need. If the unit is paid off will you let renters live for free. Check the neighborhood and see what the rents are and change that.
2007-01-02 16:47:02 · answer #5 · answered by sm4125 3 · 2⤊ 0⤋
It depends on the rental market in your area! I would try to get 15% more than what my mortgage is!
2007-01-02 15:25:26 · answer #6 · answered by CEESONE 4 · 0⤊ 0⤋
a good estimate is 15-25% above what you pay out. This will make it worth the head aches that will arrive later down that road.
2007-01-02 15:22:44 · answer #7 · answered by eric k 3 · 0⤊ 1⤋
search local classified,,resreach what other landlords in your area are charging. wanna move it fast? charge somewhat less ;)
best of luck!!
2007-01-02 15:24:28 · answer #8 · answered by tarah1980 2 · 0⤊ 0⤋