| by Kenneth Chase | 13 comments

How Much Rent To Charge – Real Estate


How much rent should I be charging? Well
I’m going tell you right now, I am 98.6% accurate on my
rent rates, on my last one thousand homes, and today, in this video, I’m going to show
you how you can do that too. You got a house and you want to know, how
much rent should I charge? This is such a good question. It doesn’t take much time
to do just a little bit of market research and what I mean by that is,
you’ll find that houses of similar square footage and bedrooms and
bathrooms more or less follow each other and what they’re renting for. You’re
really not going to find a 50 or 75 or 100 dollar gap. Most of the time, they’re
within 25 or 50 dollars of each other, so it’s a pretty tight market. You could go
and download an app right now, Zillow Rent, which means Zillow has an app just
for renting and you could put in your filters, my house is this many square
feet, this many bedrooms and bathrooms and it will auto-populate homes in the
area for rent that are just like your house. So you might find within a
ten-block radius that if you have a thousand square foot house,
“Wow, here’s a 900 square foot house running for a thousand, a 900 square foot
house running for a thousand, a thousand square foot house running for 1,100, a
1,200 square foot house running for 1,150 and you’d average them out and you look
at where yours is located and as long as you got similar bedrooms and bathrooms
in the square footage, then you’re pretty much going to get pretty accurate on what
your rent is. So just a little bonus on this that I think will help you out is
that, decide, test and adjust. Don’t get yourself lost. If anything you can guess
maybe $25 high unless it’s pretty obvious what right on the market is but if
you’re not getting calls within the first 30 days then it’s time to actually
make an adjustment to get more alignment because ultimately what should you rent
something for is what the market’s going to tell you. The market is not going to
tolerate paying a higher rent than twenty-five or fifty dollars unless
there’s something super special and unique about your home. People will pay a
little extra money for something unique, for example, maybe you have a property
with strange amounts of parking and a huge RV pad, well that would probably
rent for maybe a little bit more. A fence in backyard may not actually
fetch more rent but might increase the perceived value and get someone to rent
it sooner but let’s say you have a mother-in-law basement apartment
producing extra rent, oh yeah, you can actually bump the rent big time on that
one saying, rent this sublet that and boom, you actually can make a spread of
some extra money, there’s something there that’s unique and different that will
actually increase that value. So study, look at the market, go to Craigslist, go
to your local classify, go to Zillow Rents, any of those things
are going give you a really good idea, go to rent.com and I think you’ll find
pretty quickly that it’s pretty obvious, the only thing you need to check back on
is, after renting for a few weeks, if you’re not getting bites, you’re not
getting calls, then either there’s a lot available in the market and it will
simply take longer but if there’s not a lot available in the market, you’re not
getting calls, chances are your price is too high and doing twenty-five or fifty
dollar rent drops is pretty common if you’re pricing a home right around the
median, make some adjustments, find tune, learn and grow. Thanks for watching
today’s video. Be sure to click subscribe because I got more juicy real estate
content coming your way.

13 Comments

Tupacstole Mybike

Nov 11, 2017, 3:21 pm Reply

Can you do a video about what the process is after you find someone that wants to rent out your property? What kind of papers need to be filled out, background checks, etc etc.

Shane Pereira

Nov 11, 2017, 3:51 pm Reply

Hey Kris! Quick question… Have you ever bought a house again which you had sold a long time ago.?

Gabadaba08

Nov 11, 2017, 4:31 pm Reply

1000 homes? How many do you need?

gabriel lledo garrido

Nov 11, 2017, 6:13 pm Reply

In USA your in year 3000 meanwhile in the rest of the world…

Doxemanticorn

Nov 11, 2017, 1:48 am Reply

Will you ever do a house tour?

Michaeldr1997

Nov 11, 2017, 8:06 pm Reply

I was once told that around 1% of a houses worth is a good rent price. Would you say that's somewhat accurate?

Lake End

Jul 7, 2018, 1:23 am Reply

Awesome video …. short and to the point! Thanks!!

s. Armitage

Sep 9, 2018, 11:07 pm Reply

Is a property management company really worth their cut of the rent, or would it be better to learn and do that part my self?

Space Monkey

Sep 9, 2018, 12:24 pm Reply

Why do 90% of houses and rentals on Zillow not exist? Fake accounts or realtors making up things to make the app inaccurate?

Rentometer

Oct 10, 2018, 7:36 pm Reply

Awesome video! A tool like Rentometer is great for checking rent prices in your local area!

TITAN GAMING

Oct 10, 2018, 10:20 am Reply

Man you made videos about everything that involves property huh..
Love this

VeryCleaverName

Jun 6, 2019, 1:53 am Reply

Not in my market. We have 3 bed 2 bath houses going anywhere from $600/mo all the way up to $1250/mo for the same size house. Difference is there's a huge gap in the age of the homes so a new rental will not rent for $600 and at the same time a 80yr old rental will not rent for $1250/mo. Always charge the max rent possible thought to help keep rates correct and pay for damages deposits don't cover. We'd rather let a rental go empty than to rent it cheap only to have someone destroy it and have a double negative wammy. So we rent high and hold out for the right tenant. I also build our rentals so they're all brand new at the moment and demand top price.

Azamat A

Aug 8, 2019, 5:20 pm Reply

Does the tenants pay the utilities?

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