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Oct
Is There A General Rule Of Thumb Regarding How Much Rent Should Be Charged For A Home Based On It’s Value?
Author: Rob // Category: Q&AI am wondering if there is any sort of general formula for basing how much the monthly rental amount should be for a home, based on the home’s overall estimated value. In otherwords, aside from the fact that certainly a landlord can charge whatever they wish for rent, is there any sort of standard percentage of the home value that is reasonable to be charged?
Tags: Charged, General, Home, Much, Regarding, Rent, Rule, Should, There, Thumb
October 29th, 2009 at 12:33 pm
Darren hit the nail on the head. If you want to find that information you could contact an appraiser to run a rent analysis for the property. Perhaps an easier route would be to contact a realtor that specializes in real estate management and they could give you a good idea as well.
October 29th, 2009 at 6:48 pm
Normally rent is not charged based on the value of the home. Normally rent is charged based on what others are charging for rent for similar homes in the area.
As you mention the rent can be anything the landlord can get, the assumption is that eveyone renting homes (or selling them for that matter) will try to get the most they possibly can for it. This is why when buying a house the “comps” (what other homes sold for that are similar in the area) is how you base the price, the same goes for setting the rent. Of course you can try to get more, but it will be tougher.
October 30th, 2009 at 1:36 am
I think most people go to bankrate.com and see what the payment would be on a mortgage for the value of the house, then add a few hundred dollars as a premium for repairs, etc.