How Much Should you Charge for Your Rental Property

How Much Should you Charge for Your Rental Property

Investing is always a risky opportunity, but there are different types of investments to choose from. Investing in real estate is always a great option; whether you invest in a home or a condo, you can become a landlord and rent the space to tenants who need it. The rent would essentially pay off your mortgage, while you build equity in the home.

Choosing to rent your home or condo as opposed to selling is wise if you’re looking to relocate and don’t want to sell your property. Renting to tenants will cover the cost, and help you reach your financial goals even faster.

What should you consider before renting your home?

The first thing to ask yourself is if you’re ready to become a landlord. No matter how responsible the tenants might seem in the beginning, they can easily end up being the opposite and damage your home, while lowering the value of it at the same time.  You will need to have a flexible schedule because there are times when the tenants will call you to deal with toilet clogs or pipe bursts. These are serious issues that will need to be handled in good time.

How much should you charge rent?

There are a number of factors you need to consider when coming up with what price to charge. First, determine what your home’s value is in the current real estate market. The current value could be very different from what you paid for your home.

Have an appraiser visit your home; they will be able to provide a more accurate assessment of your home’s value based on local sale prices, the condition of your home, and its location.

The rent you are going to charge for your home should be a percentage of the market value. A common percentage many tenants charge is 0.8% to 1.1% of the home’s value. If the home is valued at $250,000, you can charge between $2,000 and $2,750 monthly.

If the value of your home is below $100,000, charge close to 1% of the home value. If your home is a little more expensive, consider charging a lower percentage; otherwise you might not be able to attract the tenants you’re looking for.

You need to put into consideration how much other landlords in the area are charging for their rental properties. If you find that your rent is way more than what the other landlords are charging, then there is a chance you will have a hard time finding a tenant who will be ready to accept the terms, and able to afford the property in the first place.

If you are looking to rent out your home so you don’t have to pay for the home loan, then the rent should be the same price as your mortgage payments. You also need to remember to factor in estimated costs for repairs, homeowners’ association fees, taxes and insurance.

One thing you need to keep in mind is you cannot choose whatever rate you want. There are some states in the U.S. that have placed limits on how much landlords can charge for rent, late fees and deposits. The same applies to the different provinces in Canada.

How do you put up your property for rent?

Are you ready to find a tenant for your property? Circl is a rental property directory that lets landlords post rental listings. Manage properties on desktop, or download CirclApp to upload and manage properties wherever you are. The app lets you screen tenants, schedule a viewing with them, and even upload work orders to contractors if a home repair needs to be completed.

 

Tags

You May also Like this

Things to Get Rid ...

Introduction. When it comes to business, there are a couple of things...

How Professional Cleaning Can ...

If you are entertaining the idea of selling your property, then it...

Usage of Virtual Data ...

Technology has indeed developed a lot and has come a long way....

How Much Time Do ...

The experience of foreclosure can send anyone into a tailspin. You worked...

Five important factors to consider before buying commercial property
Five important factors to ...

Buying real estate has always been and will continue to be a...

8 Reasons Mobile Apps are a Good Investment for Real Estate Companies
8 Reasons Mobile Apps ...

Long time back, buying/selling a property was nothing less than a battle....

5 Things Potential Home Buyers Notice When Touring A Home
5 Things Potential Home ...

When you’re selling your home, have your home staged, and begin showing...

A Guide to sell your Property: Making the Decision
A Guide to sell ...

Are you tired of looking for an answer, “Can you ?” and...

If we see from business’s perspective, those long decision-making days are totally killing. Real estate brokers and firms put of much efforts to close a deal that each day wait is nothing less than torture. However, they can actually speed up the closing process by automating the sales process. Automation of few tasks like lead generation and lead management, reply the buyers’ queries promptly and timely and track the progress of each lead will help them to leverage the sales process and close a deal far earlier than ever before. To know more how to achieve this, keep on reading. Easy lead management means faster deal closing Lead is what you need to witness success. Real estate is one such industry where lead conversation ratio is very low. The reason being is a lot of people inquire but only a handful of buys. With such a low conversion ratio, no real estate business can afford to lose a single lead. Plus, managing so many leads is also very tough. Your representatives will find it difficult to sort them out based on their interests and needs. Once you automate the lead management process, you can easily save all the data over a single place. You can quickly create a new lead, keep them posted about your deals and offers, and add customized activities with respective leads. One more thing here to notice is that there is a need to go a lot of regress follow-up in the real estate industry. You need to contact your leads again and again. With automation of sales process using CRM software, you will be able to update the follow-up details, set next follow-up date, import and export any other details related to the leads and add custom fields to them. When you are able to get all the details related to a particular lead, chances are high that you will do the right pitching and convert them into business. So, easy lead management simply indicates that you will speed up deal closing process. Simplified operations Real estate is one such industry where operations are pretty complex. Regress follow-up, huge negotiation, long client face-time, and various paperwork are some of the operations that are highly labor intensive and complex in nature. With such complex operations, it is often found that real estate agents stay engaged in all these tasks most of the time and loss focus from lead conversion. Henceforth, they witness slow, or no closing of deals. However, automation of all these tasks helps the real estate industry to set their representatives free from all these customary and tedious tasks and allow them to focus their primary function i.e. to close a deal. Better communication Though communication is one of the most important components of every business, its importance increases by manifolds in the real estate industry. You need to be in constant touch with your prospective clients regarding their concerns, requirements, and needs. If there is a loophole in your real estate business communication then chances are bleak that you will enjoy a high number of a closed deal. Email is one of the most prominent ways to do business communication. Businesses prefer to comminute via email rather than phone as it is easy, quick and act as a proof communication has happened. Email automation helps a real estate industry to send bulk emails, set reminders to send a particular email to a particle client, sync all the contacts with the email and send automatic follow-up reminders to the agents. When you have such an advanced level of communication, your agents are going to close a deal easily, promptly and profitability than ever before. Great sale support system to the clients and the team If you want to witness a surge in your deal closing number then it is very important that you provide a great support sales support system for your sales team as well as to the customers. In the wake of technology, the AI has taken a new name and it is “Sales Bots”. A product of high-end integration, sales-bots are there to nurture your leads, remind the clients and the sales team about the pending deal, alerts the salespeople about every new lead, automatically create the follow-up task sequence and notify the prospective clients about the on-going discounts on their pending deals. Even sales-bots are so efficient that they create automatic deal of existing customers and notify them in prior. When your sales team and customer get such an extensive support system, closing a deal is easy as hassle-free. There is no second opinion that the real estate industry requires some extra efforts to generate revenue. However, a simple step of automation of the sales process makes a huge difference in all aspects. So, automate the sales process and take your real-estate business at new heights.
How can you close ...

Real estate is a tough business. It takes a lot to close...

Land Contract
Contract for Deed: Land ...

What is it? A contract for a deed, also called land contract...

new home
5 Mistakes to Avoid ...

Not many people were buying homes after 2008 Economic crisis, but three...

home with pathway
Can I sell a ...

Selling a house is not an easy task especially if you want...

Pros and Cons of Increasing the Size of Your Real Estate Deals with Outside Equity Investors
Pros and Cons of ...

It is the nature of capital markets to have capital demand outstrip...

How Technology Can Help Improve Your Rental Property Business
How Technology Can Help ...

Have you ever wished you could clone yourself, so you could be...

real estate buildings
Real Estate – The ...

What is the first thing that comes to your mind when it...

private villa for your stay in the peaceful land of Sosua
Why should you choose ...

Taking a gander at tourism in Sosua travel insights, we see that numerous...

Top 5 Best Real Estate Investment Ideas
Top 5 Best Real Estate Investment Ideas

Investing in real estate can be an extremely rewarding venture that can...

When is the right time to sell your luxury property
When is the right ...

The best period to seal the most profitable deal The process that...

USING CURRENT DEMOGRAPHIC AND ECONOMIC DATA
USING CURRENT DEMOGRAPHIC AND ...

Demographic data is one kind of statistical data which describes population, income,...

7 Ways to Prepare your Home for Appraisal
7 Ways to Prepare ...

So you’re selling your home or looking to re-mortgage? You’ll be looking...

Garden Decorating Tips For Spring
Garden Decorating Tips For ...

Spring is here! The sun is out and shining, and it is...

Attracting more tenants to rental property
5 Smart Strategies To ...

You’re not making money unless your rental property is occupied. If you...

7 Tips For Getting Your Mortgage Application Approved
7 Tips For Getting ...

A mortgage requires work - though the end result of owning your...

8 tips for first time property buyers
First Time Property Buyer? ...

When you’re a first time property buyer, there’s lots to learn about...

Closing Tips For First-Time Home buyers
7 Closing Tips for ...

Buying home can seem rather overwhelming than exciting and can be especially...

Things to Look For In a Home before Signing the Deed
10 Things to Look ...

Home ownership is a big deal and an equally big investment plan...

7 Tips For A Solid Rental Agreement
 7 Tips For a ...

Owning a home to use as a rental property has the potential...

Sell A House From The Outside With These Curb Appeal Tricks
Sell a House from ...

A home’s first impression is the exterior; there’s no way to avoid...

Renting vs buying Investment Strategies
Investment Strategies: Should You ...

Real estate is a big investment and as a result it’s not...

tips for home sellers
Tips for Home Sellers ...

Here’s continuously the busiest time of the yr. for precise estate sales....

Post your Comments

logged inYou must be to post a comment.