How Much to Charge for Rent

Video Transcript

"There's a lot of factors that come into play when you try to determine what's the way you should charge for your rental. The first thing you should do is try to get a gage of what rentals are in the particular location or area where your property exists. You can do that by looking at other rentals in the Internet at different websites. You could also call in a professional real estate broker and get opinions on that, maybe two or three different opinions. Once you've derived that number, you also want to look at the candidate, the person that's coming to rent your property. If, for example, you're going to allow that person to bring a pet in, you might charge an additional fifty or a hundred dollars a month for the pet because the pet will probably cause more wear and tear on your property. If you're going to allow somebody to come in who's a smoker, you may charge more money. Or if the person brings children in, you may charge more money. Conversely, if you find somebody who is going to have less or pro...or cause less wear and tear on your rental property, you may actually charge less than the market rate. So these are things you need to look at and kind of determine what works for you. You should also always take it, take into account what are the expenses on the property. You want to rent the property at more than cover your expenses and actually produce a cash flow that's positive and actually have a profit. If you're renting your property and you're losing money, that's really not a good thing. It's probably a big red flag and you should relay look at possibly selling your property in that instance."