There are 2 ways to make money from real estate. Either you rent it out for cash flow or flipping it for capital gain and profit from the equity of the property.
Today I am going give you some ideas how you can determine the rent for your property.
- Get the information from local newspaper and see what other like renting for
- Drive around the area of your property and ask if you find any rental sign on the property.
- Check some rental web site
- Call property management company or real estate offices and get their opinions.
- Hire an appraiser to run a check on the rental rate of your area
- Take action and run ads for a week at the highest rent you think and if no response, reduce the rate until you find someone rent your property.
PS: I collect this information from Richdad.com
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Harrison,
I rely on the local market to tell me what to charge for rent. Newspapers are ok, but lack a lot of detail to be able to narrow down an appropriate rent value for your own house.
I’ve found the internet to be terribly unreliable when it comes to this topic as well.
Hiring an appraiser seems a bit extreme as well.
Just my opinions, of course.
-Grant
TheCornerOfficeBlog.com
I like the idea about finding similar properties in your area and enquiring about the rent they are asking for.
However, as for charging the highest amount and if you don’t get any interest, then reducing the amount, I don’t really like this idea. I once tried this but I did not rent my house out for 2 months. I would have been far better off taking a lesser amount and having a tennant. Just something to think about.
Cheers,
Jeff.
Thank you for sharing your experience Grant!
Thanks Jeff. But if we charging a lower rent, we must beware that we might in negative cashflow for the property. This is the hard part setting up a rent for your property. We must learn how to find the “win win” situation.