How Much Rent To Charge – Real Estate
How much rent should I be charging? Well I’m going tell you right now, I am 98.6% accurate on my rent rates, on my last one thousand homes, and today, in this video, I’m going to show you how you can do that too. You got a house and you want to know, how much rent should I charge? This is such a good question. It doesn’t take much time to do just a little bit of market research and what I mean by that is, you’ll find that houses of similar square footage and bedrooms and bathrooms more or less follow each other and what they’re renting for. You’re really not going to find a 50 or 75 or 100 dollar gap. Most of the time, they’re within 25 or 50 dollars of each other, so it’s a pretty tight market. You could go and download an app right now, Zillow Rent, which means Zillow has an app just for renting and you could put in your filters, my house is this many square feet, this many bedrooms and bathrooms and it will auto-populate homes in the area for rent that are just like your house. So you might find within a ten-block radius that if you have a thousand square foot house, “Wow, here’s a 900 square foot house running for a thousand, a 900 square foot house running for a thousand, a thousand square foot house running for 1,100, a 1,200 square foot house running for 1,150 and you’d average them out and you look at where yours is located and as long as you got similar bedrooms and bathrooms in the square footage, then you’re pretty much going to get pretty accurate on what your rent is. So just a little bonus on this that I think will help you out is that, decide, test and adjust. Don’t get yourself lost. If anything you can guess maybe $25 high unless it’s pretty obvious what right on the market is but if you’re not getting calls within the first 30 days then it’s time to actually make an adjustment to get more alignment because ultimately what should you rent something for is what the market’s going to tell you. The market is not going to tolerate paying a higher rent than twenty-five or fifty dollars unless there’s something super special and unique about your home. People will pay a little extra money for something unique, for example, maybe you have a property with strange amounts of parking and a huge RV pad, well that would probably rent for maybe a little bit more. A fence in backyard may not actually fetch more rent but might increase the perceived value and get someone to rent it sooner but let’s say you have a mother-in-law basement apartment producing extra rent, oh yeah, you can actually bump the rent big time on that one saying, rent this sublet that and boom, you actually can make a spread of some extra money, there’s something there that’s unique and different that will actually increase that value. So study, look at the market, go to Craigslist, go to your local classify, go to Zillow Rents, any of those things are going give you a really good idea, go to rent.com and I think you’ll find pretty quickly that it’s pretty obvious, the only thing you need to check back on is, after renting for a few weeks, if you’re not getting bites, you’re not getting calls, then either there’s a lot available in the market and it will simply take longer but if there’s not a lot available in the market, you’re not getting calls, chances are your price is too high and doing twenty-five or fifty dollar rent drops is pretty common if you’re pricing a home right around the median, make some adjustments, find tune, learn and grow. Thanks for watching today’s video. Be sure to click subscribe because I got more juicy real estate content coming your way.