Setting a good rental rate for your rental property in Kissimmee is essential to increasing your Return on Investment (ROI). You’re the owner of the property, so you always have the last word in what rental rate to charge for your home. But, you really want to hit that rental market right in the middle of where it currently is, we’ll tell you how!
How do you Calculate Rental Rates?
Your rental rate can be calculated using the overall value of your home. Typically, homeowners charge between 0.8-1.1% of the cost of the home. This has been determined to be the fair rental rate in most areas, and allows for the rental rate to change with the current real estate market.
For example, if your home is worth 300k, you can fairly charge anywhere from $2400-$3300 a month for rent. However, should the real estate market undergo any major changes, this number could raise or drop depending on the current market value of your home. If major changes happen while you have a tenant that has signed a contract for a certain price, you cannot make any changes until the end of the contract in most cases.
If your home has any HOA fees, include this in the cost of the rental rate. Some homeowners may even include some of the utilities in the rent so that the tenant is never responsible for making those payments. In some areas, should the trash bill fall delinquent, your home may be subject to a lean until it is paid. For this reason, it may be easier to include those costs in the rental rate, and never change ownership of the account.
What is a Good Rental Rate
If you ask too much for your home, it will sit vacant for a few months, and that’s lost revenue you can never recover. Setting the rate too low means you’re still losing rental income. So, you must set that rental rate just right.
To end up with a good return on investment, you will want to consider all factors. Major repairs and maintenance can eat into your return if they are not taken care of properly the first time or ignored for too long. Maintaining your property is one of the best ways to secure your ROI in the long run. If you are renting, you want to make sure you are properly screening your tenants to make sure they are maintaining your property as well.
The other main component in a good return on your investment property is the rental rate. Make sure to check into real estate websites in your area to see what properties similar to yours are renting for. While the above rental rate calculation is a good rule of thumb, demand in some areas may cause these numbers to fluctuate. Overall, if you yield more than 6% of your investment, you are doing something right! To learn more about property managers, read this article https://renterschoicehomes.com/kissimmee-property-management-florida/
Get Help from a Property Manager
Some owners will always want a little too much, and that’s another good reason to talk to a rent you can get to find a tenant who wants to live there for three to five years, which is ideally what you want. Changing tenants every year costs money. There is downtime and there are fix-up costs that . A seasoned veteran will know exactly how much you don’t want. Keeping your tenant for three to five years is ideal, so you want to set the rate just right. You’ll be able to increase the rent a little every year, and that will help your ROI too.
Finally, when talking to your property manager, ask what your home should rent for. home before quoting an accurate rental rate. will want to look at it first. They will want to see inside your
If you need help setting a reasonable price for your property or you have questions about Kissimmee property management, please at 407-933-2367 or in the UK at 0161-300-9595 or email: email@example.com McCormack Realty & Renter’s Choice Homes Licensed Real Estate Brokers.