...assuming the house still has a mortgage.
2007-05-22 13:54:21 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
it's not about "over the house payment" it's about "what the house is worth". If the house has a market value of about $100,000, the rental value is usually up to $1,000. But it will vary by market! Other factors to include, are the cost of insurance for the house ( a rental house will cost more to insure than an owner occupied house - it's a different type of policy), property taxes, maintenance, and the deadbeat factor. Plus, you need to make a profit on it.
So if you're heavily mortgaged, it's very likely your house is worth $100,000, but your mortgage is $1100, add in property taxes and insurance, you need to get $1500 a month to break even, IF the tenant pays rent on time and there isn't any maintenance needed. If the other houses in the area are renting for $700 a month, you're NOT going to be able to rent this one for $1500.
2007-05-22 14:00:47 · answer #1 · answered by Anonymous 7 · 3⤊ 0⤋
2
2016-07-19 10:20:49 · answer #2 · answered by ? 3 · 0⤊ 0⤋
First of all Craigslist and scams go together like bread and butter, so you should have a huge suspicion on finding rents 30% cheaper for a house near the beach in LA than in El Cajon. You gave no indication of what you consider "inexpensive", but most legitimate rentals for a 2 Bedroom House anywhere near the beach is going to be in the $2500-$4000 range/month, and the lower cost ones would probably be better suited to a 2 room closet than actual bedrooms. If you go a bit inland there are areas that you probably can get rentals less than $2000/month, but some of the areas may not be that great. Perhaps you can post what rents you are seeing and what beach communities they are in so we can give you some specifics.
2016-03-12 21:12:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can only charge what renters are willing to pay. If the average rent for the home you're offering is $1000 and your mortgage is $1500 and you want to charge $1600 to cover, you won't likely find a tenant. You'll either have to make up the difference yourself or somehow refinance to get the mortgage lower than the market rent for your home. If your mortgage is lower than the average market rent then charge at or above and negotiate down (if you have to). There is no real set value that you should charge. You have to consider amenities and the like as well.
2007-05-22 14:05:23 · answer #4 · answered by ro 6 · 2⤊ 0⤋
It's not a matter of how much over your mortage payment you should charge for rent. It's all about the rental market in your area.
You can do your own rental survey by using your local newspaper, knocking on doors and visiting property management companies. Put most emphasis on the other rentals in your area and use neighboring areas that are similar to yours if your neighborhood does not have enough rental data. Consider all differences between your property and the other rentals. Using the information you have researched you can determine what would be the competative market rent for your property.
2007-05-22 14:32:34 · answer #5 · answered by letyourlovelightshine 1 · 1⤊ 0⤋
According to Clark Howard, the loss should be expected of 10-15% after mortgage, insurance, taxes & re[pairs. He rents a few himself & one had a 25% loss but was in a very strong market. He said money is made off of increase in value at sale not through the rental. To pay expenses I would assume at least $100 over for repairs.
I thought it was crazy as I assumed rentals always made
money. Good luck! Do not rent to friends or family - iy never works out.
2007-05-22 14:08:47 · answer #6 · answered by Wolfpacker 6 · 2⤊ 0⤋
If they invested well rent is about 200% of the mortgage.
However, that is not how you come up with the rental amount. It rents for what people are willing to pay. If it is too high it will be vacent too long and you aren't making any money. Too low and you end up with loosers.
2007-05-22 14:17:21 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Your mortgage payment is quite irrelevant to what the monthly charge is for rent. Rental values are determined by the market, and not by what you have to lay out monthly. Observe what similar properties are charging for rent, and set your asking price accordingly.
2007-05-22 14:42:18 · answer #8 · answered by acermill 7 · 1⤊ 0⤋
mm... including taxes and insurance on the house, the rent for it is usually about 80% of the mortgage payment
2007-05-22 13:57:40 · answer #9 · answered by Anonymous · 0⤊ 0⤋
As much as the market can bear. If you have a fenced in yard you can command more. 10% isn't unusual, but make sure you can cover the mortgage, insurance, taxes and 'downtime'. Downtime is the time you have to cover the mortgage but can't find a tenant.
2007-05-22 13:57:38 · answer #10 · answered by Venita Peyton 6 · 1⤊ 0⤋