You’ve decided to take the plunge and rent out your property. There are many steps to take in this process but today I’d like to discuss the importance of finding out your Fair Market Rent Value before advertising your property and signing a lease with tenants.
One of the first steps you will take when deciding to rent out your property, is finding out what your Market Rent Evaluation is. This is how you know what is a fair price to charge your tenants each month. Many things are taken into consideration to come up with the value of your property. You can even see within a one mile radius of what the fair amount is to charge your future tenants, and how high you can go to make the most out of your investment property.
Here at, Real Property Management Wasatch, we are constantly checking the fair market rent value in order to rent out your property at a fair price, where both the owner and the tenant are happy. We have dealt with a few people in the past who wanted to charge almost $800 above the fair market value. Well… I’m sure you can guess but this property would not rent out and the owner refused to lower the rent. Unfortunately, they would not budge on the monthly amount they wanted to receive, and didn’t seem to mind that they were losing thousands of dollars while they let their property stayed vacant every month.
As a homeowner you have to make tough decisions sometimes. Do you lower the rent $100 (more or less) so you can get a tenant in the property, and you’d still be making money? Or would you rather wait and take that chance that somebody will come along eventually that will pay your higher amount?
This is why knowing and understanding your Fair Market Rent Value from the start, is so important.
Here are some of most commonly used websites to find your Market Rent Value…
To find your fair market rent value, you will search your address and fill in the necessary information on these websites. Then the website will pull up other homes around you and what they are charging. You can compare how many beds, baths, if there’s a garage or yard. We usually compare the property price against 3 other properties that are close by and about the same size and rooms. You will have a lot to go off from. So get comfortable using these sites and you’ll become a pro before you know it!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.