• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 7 of 7
  1. #1

    Default How Much Rent Can I Charge?

    As Much As You Want — Unless You Want Actual Tenants.
    One of the more challenging parts of managing rental properties is deciding where to set your rental amounts. Charge too much, and you’ll have unwanted vacancies. Charge too little, and you’re leaving money on the table and potentially inviting a lower class of tenant that may not properly care for your property.

    Fortunately, enough people have faced this dilemma in the past that there are some decent, proven methods of determining what your rent should be.

    When you get right down to it, the amount of rent you want to charge is “the highest amount that will keep your rental unit full” — but that’s not an easy number to discern.

    Fair Market Rent
    Fair Market Rent (henceforth FMR) is simply “the amount being charged for similar properties in the same area”. In order to determine the FMR, you’re going to have to do quite a bit of research. First, you’re going to need to find similar rental properties in the same or demographically similar areas. Then, you’re going to need to make sure that at least the following attributes of your property and the properties you’re comparing are similar:


    • Number of Bedrooms
    • Number of Bathrooms
    • Square Footage
    • Foundation Type
    • Garage/Parking


    Once you’ve found a few similar properties in similar neighborhoods, you can start your research. Your goal, as you might expect, is to find out what those landlords are charging for rent. Once you have enough representative samples, you’ll have a good idea of the rent you can swing for your vacant property.

    Techniques for Building Your ‘FMR’ Database

    Check the Competition Out Online
    There are several resources you can access to get rental information on properties. Often they’ll be listed on CraigsList, ApartmentsForRent, Zillow, or similar resources, with the rent listed right there in black and white. If you can’t find a particular place online and you really think it’s highly relevant to your situation, you can call a real estate agent and see if you can get some ‘insider’ info on the property. You can also use this tool to get an idea of what the HUD Section-8 rents in your area are which can at least give you a starting place for your deliberations.

    Pretend To Be a Prospective Tenant
    Probably the most straightforward way of getting rental information — call the landlords of similar properties and ask them – even set an appointment to view the inside of a rental in your area. Just don’t waste too much of their time or get drawn into filling out a lot of paperwork; if they’re not willing to disclose the rent without a fuss, move on. It’s not worth the hassle.

    Talk to a Local Real Estate Agent
    Agents make their living off of knowing what the optimal rent for a given property is. Not all agents deal with rentals, so look for one that has rental listings in your general area.

    In the end, naturally, you are the final arbiter of how much rent you’re going to charge — but the market will determine whether your decision is going to leave your property vacant or full. The ideas above will usually get you to a solid number that might not be the “highest” possible rental price, but will be a number that nicely balances vacancy time versus rent income.

  2. #2
    Join Date
    Nov 2013
    Location
    USA
    Posts
    14

    Default

    The rent charge depends on local rental property demand, the economy, the health of your local housing market, location and condition of your house. Before you set your rate, search the market well for comparable rental houses, in local rental guides,help real estate agent and checking online listings to see what other landlords are asking.

  3. #3
    Join Date
    Mar 2006
    Location
    Auckland City
    Posts
    60

    Default

    Hi

    You could check rental stats throughout NZ here http://www.dbh.govt.nz/market-rent

    or for specific building by building stats in Auckland CBD http://impression.co.nz/stats

    Personally I like the fair market rent comment FMR

  4. #4
    Join Date
    Mar 2006
    Location
    Auckland City
    Posts
    60

    Default

    So sorry somehow I ended in the wrong forum, please ignore my post!! I will need to put my glasses on

  5. #5
    Join Date
    Oct 2015
    Posts
    26

    Default

    According to me the rent charge is depend on local rental property demand, the economy, the health of your local housing market, location and condition of the house. Before you set your rate then search the market well for comparable rental houses. In local rental guides,take help of real estate agent and checking online listings to see what other landlords are asking.

  6. #6

    Default

    I look at local areas first. I get an idea then I see what extra perks I have with my property and adjust is accordingly. You have to look at the age of the property, the area, the value of the area, what you include, what you do not include and what limitations you set for the tenant.

  7. #7
    Join Date
    Dec 2015
    Posts
    8

    Default

    According to me, First I look at local areas. I get an idea, then I see what extra perks I have with my property and adjust is accordingly. The rent charge depends on local rental property demand, the economy, the health of your local housing market, location and condition of your house. Before you set your rate, search the market well for comparable rental houses, in local rental guides, help real estate agent and checking online listings to see what other landlords are asking.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. How do you charge rent for Sleep-out?
    By FreezingHot in forum Property Investment (NZ)
    Replies: 22
    Last Post: 24-10-2017, 08:23 AM
  2. Do you charge a tenant for the day they move out of the property?
    By mrsaneperson in forum Tenant Stuff (NZ)
    Replies: 6
    Last Post: 26-03-2017, 12:37 PM
  3. Replies: 25
    Last Post: 06-04-2015, 10:26 AM
  4. Discharging of charge order over a property
    By Kavita in forum Welcome Newbies!
    Replies: 0
    Last Post: 15-04-2014, 11:35 AM
  5. Can I charge a letting fee?
    By Fleur Hindt in forum Property Management
    Replies: 4
    Last Post: 28-01-2014, 11:43 AM
  6. Fixed water charge
    By Nick7 in forum Tenant Stuff (NZ)
    Replies: 7
    Last Post: 26-09-2012, 02:54 AM
  7. How much does your property manager charge?
    By markw1 in forum Property Investment (NZ)
    Replies: 68
    Last Post: 19-06-2009, 04:23 PM
  8. Statutory Land Charge
    By essence in forum Finance, legal and tax (NZ)
    Replies: 3
    Last Post: 12-04-2007, 09:58 AM
  9. How much does your property manager charge on repair?
    By fudosan in forum Property Investment (NZ)
    Replies: 2
    Last Post: 14-08-2004, 10:40 PM
  10. Strange accounting by previous owner
    By GoGirl in forum Forum Funnies
    Replies: 6
    Last Post: 23-12-2003, 11:58 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •