For homes worth more, 0. If housing prices are up and the inventory is low, the demand for rentals also goes up. The same is true in the opposite direction. Just like an appraiser values a home using comps , you can do the same thing with rentals. There are numerous ways to research comps but start by searching local listings in the paper or online for rentals.
Additionally, sales prices might help you gauge how the market looks as well. The key features to examine in comps are the square footage, number of bedrooms, number of bathrooms, and its location, Kutter says. Spellings adds any recent renovations are good to look at as well. Once you find a few rentals that are similar to yours, set your price.
Make sure to keep in mind any unique features or upgrades your home has as well. This can be very tricky, but it can also be a good way to establish a competitive rate that gets a high-quality renter in the door who wants to stick around.
Figure out your monthly mortgage payments, taxes, insurance , and other expenses. Note that even if you come in low or break even each month between what you pay for your house and what you make in rent, you still come out ahead because your home is being paid off and is likely to appreciate in value.
While they might not be totally accurate, online rental calculators can give you a sound basis for setting rent. Consider your short- and long-term goals in renting your home and what financial needs you have as well. Also, keep in mind a calculator can only provide an estimate, which may or may not be accurate. Kutter says a real estate agent or broker can be a great guide as you put your rental on the market. They have numerous resources, such as the MLS database , that can provide extensive data and information about the market in your area.
Find a reputable and trusted agent who has extensive experience in your ideal location, especially with rentals. An agent will most likely use a combination of many methods listed here, including comps and your financial needs, to set your rental price.
You could then use the remainder of your earnings as profit or savings. That amount could be different from the price you originally paid for your home. Typically, the rents that landlords charge fall between 0. A website like Trulia or Craigslist can show you how the rental rate in your head stacks up against the rates your competitors are offering.
Some states limit what landlords can charge for rent, security deposits and late fees. But that comes with a cost. If you want to publish your own real estate listing, you can upload it onto a website like Zillow for free.
Save time and money, find a local expert or email us at apmsupport buildium. Disclaimer: This calculator is for illustrative purposes only. Please seek professional advice if needed. Powered by :. Stay in the know with the latest news on owning a property, laws, and info from the leaders in property management. Rental Property Calculator. Sell Calculator. Price paid. Enter the amount of your original mortgage loan amount. Enter the current balance owed on your mortgage loan.
Mortgage interest Rate Enter the current interest rate on your loan. This amount is calculated automatically. If your actual Principal and Interest payment differs from this amount, add or subtract the difference in the next box.
Enter the annual cost of property taxes, insurance and any common charges or association dues for your property. Enter or estimate the amount of monthly rent you can get for your property.
Enter a number between 1 and 50 This is your time horizon. I want to see if it's better to sell now or later, and the impact that this decision has on my wealth. Show Advanced inputs. Make-Ready Costs Amnt spent on refurbishing - used in the capital gains tax calc.
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