Setting Rents/Small Towns
I was wondering how one would go about setting rents for a rental in a small town. There aren't many rental houses here but there are a few rental mobile homes. .
Would I base it on apartment rentals?
thx.
[addsig]
Check your local weekly paper, stop in at a RE office and ask for names of landlords, same at a local bank. Call on any signs you see. Usually, there are a lot more rentals out there than you would think. What's the population of the town you are speaking about?
Good Luck,
Shawn(OH)
thanks for the reply....the population of my home county is about 12,000 and the city pop is about 6000.
Homeownership Rate is about 74%,
Multi-units less than 7%,
Vean house values about 60K. There are some in the 100k range but they are more out in the country. I'm seeing alot of FSBOs and other RE signs...but not too many For Rent...except for one that was in the paper but it has already been leased...good sign I believe.
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[ Edited by tytitan on Date 03/22/2004 ][ Edited by tytitan on Date 03/22/2004 ]
Just a suggestion here, not based on any experience, just my thoughts. In addition to the good points above, you may just figure out what the market will command by some trial and error. Figure out your costs for the property, expenses, vacancies, etc., then you can back into what you need in rent to cover your expenses and costs. I suppose the important thing is to KNOW that you can at least get enough rent to breakeven before your purchase a property, and not go into a negative cash flow position. I've heard that the typical lease option rent is about 110% of going market rent too. Personally, I have set my lease option rents to cashflow at $200 per month, ($750 and $850 per month) I don't worry about hitting that 110% too much, I'm actually right at market rent with that $200 figure.
thanks for the great responces mates
[addsig]