For example if a condo is worth 300k , is there a general way to know what a fair rent should be.
2007-02-15 07:15:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I am a general appraiser and with income producing property there is a formula but not with single units. The only way to determine a fair rental value is to go the market and see how much people are renting condos for. Most likely it will not cover the the mortgage, taxes & insurance but after a few years you should be close to breaking even and can enjoy the appreciation on the property. After a while you will receive cash flow from the prooperty due to rental increases. The best source of rental info is to talk with landlords, rental agents as well as your local newspaper to get an idea on how much you can charge.
2007-02-15 08:45:26 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
2
2016-07-18 16:13:41 · answer #2 · answered by Laree 3 · 0⤊ 0⤋
You could probably do general estimates of rent based on home price, but it all mostly on the rental market in the area ussualy. Just like home prices, rentals tend to have local market fluctuations based on supply and demand.
Based on experience, I knwo that Condos around here( northeast) that sell for 300k condo probably easily rent for 1200 a month. But there are so many factors to detemine. I know some Condos that rent for as high as about 2500 a month, to buy them they cost around 500k.
2007-02-15 07:19:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Nope. The market determines rents, and it varies widely by location. People used to use rent multipliers and such (formulas), or they would figure that they should just about break even during the first few years of ownership, but in today's market, the steep appreciation curve has thrown all of that out of the window for private investors. You could not buy a property and break even on the rent in virtually any MAJOR city in the US. In the last year or so, however, that insanity has somewhat reversed course, so we'll see.
Talk to a Realtor in your area and ask about fair rent, or look in the paper for a rough idea. If you're in Maryland, you're already talking to a local Realtor!
2007-02-15 07:23:26 · answer #4 · answered by tax_man_cometh 2 · 0⤊ 0⤋
In general i have personally found that if you are buying and you have reasonably ok credit... expect around $7 for every $1000 borrowed/loaned. So.... if you are renting, your landlord is forking out in the ballpark of $2100 a month... if they had to finance it. Therefore I think your rent would be at least that much. The whole idea is to make money off of the tennants. Of course there are nummerous other factors to figure in... but as a general rule of thumb this should be in range. If you're renting at this pricepoint, i would suggest buying your own so you build your own equity... not to mention other tax benefits.
2007-02-15 07:39:40 · answer #5 · answered by Lance G 1 · 0⤊ 0⤋
Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?XrhZ
2016-07-12 06:33:46 · answer #6 · answered by Mercedes 3 · 0⤊ 0⤋
check going rate in paper for what rent goes...That is the true determining factor.
2007-02-15 07:18:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋