How Much Can You Rent Your Columbus Home For?
If you are a Columbus homeowner not wanting to sell your home but retain the property and rent it out, or are considering purchasing a property to turn it into a rental, you might be wondering exactly how much you could charge for a monthly rental price on the home.
Landing on a rent price that both meets your needs for the property and seems like a fair request to a renter can be challenging. It can be challenging if this is your first rental property. You want to set a fair price but also be able to bring in enough money to make owning a rental in Columbus make sense. There's no automatic one-size-fits-all number for every Columbus rental. There are however some ways that you can determine a reasonable rental rate for a Columbus property.
Using the value of the home
One method to arrive at a fair rental price on a property is to consider the overall value and cost of the property. Many real estate investors will use this and try to set a rent price anywhere between 0.8% to 1.1% of the property value as a monthly rental price. For example, if a home has a value of $454,900 the rental charge would be anywhere between $3639 and $5400 per month. This can be tricky if you are not well-versed in real estate to find the actual fair market value of your property. Some online tools can help you arrive at the fair market value but these are not always the most accurate.
Some real estate investment experts would advise that this method should be used in conjunction with other methods to help arrive at the best rental price for a property. You want to consider supply and demand in the neighborhood that the home is in and the actual attributes and amenities that the home offers a renter. Just because your property is worth a certain amount does not mean that a renter will see it as that or be willing to pay premium rental prices.
Using rent comparables
Comparables, or comps, as they are more widely known in real estate jargon is the act of looking at what other rental properties are charging in the same area as the property you are considering renting out. Not only do you want to find properties in your area but properties with similar attributes that your property offers. This includes the number of bedrooms, square footage, number of bathrooms, house age, overall condition, location, and other desirable features.
It might be difficult to find comps and could take some time. There are several different ways to find them you can start by simply searching local rental listings. It is also good to look at rentals that are being rented to see what current renters are paying right now for properties that are like yours. You can find rentals through property management companies and other landlords you may know.
Talk with a real estate professional
The best way to arrive at the right rental price for your property is to talk with a local Columbus real estate agent who has experience with investment properties. They can help you to determine your rental price using the methods above but can give you true and realistic numbers. They can help you find reliable sources for determining the fair market value of your property and true comparables in the rental market for your Columbus property.
A real estate professional will also be able to take all this information and compare it to the actual amenities and attributes of your Columbus rental to arrive at the best rental price. It will attract responsible renters and keep your rental occupied. Because that is the overall goal; getting a responsible renter in the property so that you can bring in rental income on a steady basis.
If you are looking to purchase a possible investment property contact me anytime. I have extensive knowledge in helping find rental properties for landlords both seasoned and beginning. I can help you arrive at a fair rental value and determine if a Columbus property has the potential to be a great rental property. Contact me anytime for any Columbus real estate needs.