How Much Should I Charge to Rent My House?

Use a formula to calculate rent, then adjust it based on market conditions.

Percentage of the Home's Value

According to Bankrate.com, a good baseline to establish a rental amount is to charge 1 percent of the total value of a property. For example, for a property valued at $225,000, a baseline for rent could be $2,250 per month.

Market Value

Market conditions for value might be different than a percentage of home value when establishing monthly rent. Comparable rental prices for homes similar in size and age will provide an average rental price that will be on par with market conditions.

Bottom Line

A rental price too far above or too far below market values can hurt a profit margin. Using a percentage of value as a baseline helps establish an idea of a rental amount, but rental market values are the best way to maintain profit in a rental property.

References

• Comportone.com: How Much Rent Should You Charge?
• Bankrate.com: How Much Should You Charge for Home Rental?
• Property Do: How Much Rent Should I Charge for a House/Home?