How much should I charge for rent?

Answer

When you enter the rental business, you unfortunately can’t just charge what you want in order to make a profit. You can charge only what the market will bear. You first must look at what comparable rental units in your area are changing for rent.

Cover your expenses

If you base your pricing simply on how much over mortgage you need to get, you will probably either charge too much or too little. If you won’t make enough money to cover your mortgage plus all the other expenses that go with owning a home, such as taxes, insurance, maintenance, and homeowners association dues, you might not want to rent it out at all.

What to charge?

A good rule of thumb is that the mortgage payment (not including other expenses) should be about 50% of the rent you take in. So, for example, if your mortgage is $800, if you can get around $1,600 for rent, you should be fine.

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