How to Figure Out How Much to Rent Out Your House For
Renting your house is more complicated than it seems. The initial decision to rent your home must be based on strategic calculations regarding the cost of continuing to own the property. One of the biggest decisions is how much you will charge per month to the tenants of your house. This must be figured out carefully, based on things like your mortgage, your expenses, and your property taxes.
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Things You'll Need
- Financial calculations
- Comparative rentals
- Property manager
- Legal consultant
- Advertisement venues
Instructions
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Sit down with a financial planner and calculate how much it will cost to continue to own your home. This will primarily consist of your mortgage payment, but Realestate.msn.com reminds potential landlords to not forget costs like maintenance, yard work, and repairs.
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Decide whether you are going to manage the rental yourself, or hire a property management company. A property management company will become a necessity if you are moving out of town, as they will handle repairs. Property management companies will also screen potential tenants, and review their finances and references before allowing them to sign a lease on your home.
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Figure the cost of any repairs and property management company into your rental asking price.
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Use websites such as craigslist or local newspapers in your area to compare rental prices on similar properties. This will give you a good idea of what similar properties are renting for.
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Tips & Warnings
Figure out the entire deposit you will be asking for a tenant to move into the property. This is typically first month's rent, last month's rent, and a security deposit equal to a month of rent.
Check with your homeowner's insurance policy to be sure you are covered for damages when renting your property, according to CBSNEWS.com.
