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How Much Should I Charge for Rent?

How Much Should I Charge for Rent?

How is the potential rent determined? You are going to need to make an informed guess. Don't get carried away with overly optimistic assumptions. Setting the rent too high and ending up with an empty unit for months quickly chips away at the overall profit. Start with the average rent for the neighborhood and work from there. Consider whether your place is worth a bit more or a bit less, and why.

To figure out if the rent number works for you as an investor, calculate what the property will actually cost you. Subtract your expected monthly mortgage payment, property taxes divided by 12 months, insurance costs divided by 12, and a generous allowance for maintenance and repairs.

Doing your own repairs cuts costs considerably, but it also means being on call 24-7 for emergencies. Another option is to hire Times Real Estate Group, which would handle everything from broken toilets to collecting rent each month.

If all these figures come out even or, better yet, with a little money left, you can now get your real estate agent to submit an offer.