Charging Below-Market Rent? Hereās What You Can Do
Charging Below-Market Rent? Hereās What You Can Do
Abstract
How to Know if You're Charging Below-Market Rent If you want a very quick estimate of how much you should be charging for rent, you can run the One Percent Rule in your head. This method says that the monthly rent should be equal to roughly one percent of the property's current value. On a $150,000 property, that comes out to roughly $1,500 in rent. Real estate agents tend to have a good feel for how much properties rent for in certain neighborhoods. Not only can you browse current rental listings in your area - which is a great way to know how much other landlords are charging for similar properties - but you can also use their internal rent estimator tool. Secondly, you need to know the maximum fair market rent rate. Tips for Increasing Rent If you decide to increase the rent in order to bring it into alignment with current market rates, make sure you have a plan. If you own several properties, increasing rents is something you'll have to do fairly frequently.
