FAQ: How Much Should I Charge For Rent?
Choosing to rent out your home is a big deal, and it’s a decision all of us here at SMART take very seriously. Of course, with that decision comes the next question: How much should be charged for rent?
We keep the process pretty simple.
Our team of professionals will prepare a Rental Analysis of your property to advise you of the expected rental price range.
Three main factors affect the rent:
- Its condition
- Its location
- What do comparable rental go for in the same area
Different areas of Las Vegas will bring different rents, that’s why it’s important to sit down with our in-take specialist to go over the details.
Ideally, the amount of rent you charge your tenants should be a percentage of your home’s market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home’s value. For example, for a home valued at $250,000, a landlord could charge between $2,000 and $2,750 each month.
If your home is worth $100,000 or less, it’s best to charge rent that’s close to 1% of your home’s value.
It’s important to note: Charging rent that’s too high will make living in your house unaffordable for many people. If the rent you want to charge is unreasonable compared to what everyone else around you are charging, you might struggle to find a tenant who’s willing to commit to your terms. A website like Trulia or Craigslist can show you how the rental rate in your head stacks up against the rates your competitors are offering.
Zillow has published a Rent Zestimate accuracy table that shows the level of accuracy at the national, state, county, and large metro area levels. This table may come in handy for you if you’re unsure about how to set your rent price.
Questions?
Give us a call: 702-750-9725
SMART is open Monday-Friday from 9am-5pm.
