How to Determine Your Rental Rate
When buying a rental house, you should always look at realistic expenses & income. See our blog on "budgeting for repairs & other expenses". What is a realistic rental rate? Is Zillow a good source? Is a real estate agent a good source? Do your expenses dictate what the market will pay you in rent? The market always dictates the amount of rent you can get. You need to look at what other similar houses are actually renting for. This is the amount of rent you can expect. Have an agent email you a list of houses near yours. Study the data and price your house accordingly. The worst thing you can do is overprice a house and then drop the price later after it has been sitting vacant.