As someone interested in renting their property, you are a real estate investor. And as a real estate investor you might have your own successful strategies.
Your strategies might exceed my property management perspective; but I thought you might find the below information on Rental Strategies helpful:
Rents vary, but 8% to 10% of a unit’s value is one formula many investors use. In a competitive rental market like Philadelphia, we are often closer to 8%. So 0.8% for a property resale value of $100,000.00 would rent for $800.00.
Your property will be vacant 4% of the time. Vacancies vary, but many investors incorporate vacancy at 3-4 weeks yearly (or 4%) as their strategy formula.
Lower valued properties tend to rent for a higher % then higher priced properties. A $150,000 home will rent in the 8-10% range. Million dollar units don’t rent for anywhere close to $8,000 a month.
I mentioned in my last letter that your investment can build you Equity and produce you Cash Flow. The above numbers can be reasonable, safe numbers to use when considering your investment strategy.
Remember the rent will be based on value. If you are planning improvements, the rents will be based upon that improved number. Not your purchase price.
Take a moment now to consider the above rent determining strategies. Email me when you want to maximize your investment.