Rent advice

I have a house I'm thinking about renting out. So I ask for your guy's views on this.

It is a 3 bed 1-3/4 bath on .25 acre in a small community (pop. 160 give or take a few), neighboring town is only a couple miles away.

It'll be furnished (couch, double recliner, stackable washer/dryer, flat-top elec. stove, fridge, NG furnace,) and has a small workshop/tool room downstairs (it has a finished basement) and possibly a detached garage (if I decide not to use it to keep all my stuff in), on the side of a hill (the whole town is on the side of a hill, really).

What I see as a luxury is the stackable washer/dryer. No laundromat here or the next town, and the closest one MIGHT be 22 miles away. If that one isn't open the next couple laundromats are about 30 miles away.

It's at the butt-end of a T inner section, well maintained roads, decent neighbors, good views, nearly zero crime.

This is what's in the area for competition-

1. 4 bedroom 1 bath, large house, $650/mo, $500/damage dep.
2. 3 bed 1 bath $490/mo, $490/security deposit
3. 4 bedroom house, huge gas fire place, fully fenced, carport, extra parking, years lease $500/mo.
4. 4 bed house $700/month, $400/cleaning deposit. No inside pets or smoking.

What would you suggest I ask for rent?

 

Where do you live? Those prices all seem ridiculously low.

 

Holy shit, for prices like that I'll move in. That's crazy cheap. I wouldn't even know what to tell you. My mortgage is double that. This aren't even numbers I understand for rent. I rented a 600 sq ft apartment 15 years ago for $700. I'm out of the loop.

I guess I would suggest figuring out how much it will cost you to maintain per month as a landlord and compare that to the other prices in the neighborhood. You don't want to lose money on it.

 

I pay $1000 for a 2 bedroom apartment...

 

That is really cheap rent.

 

It's in Utah. Problem is...it's not exactly remote, because it's in a small community, but then again, it's not what I'd call urban. Closest town is 3.5 miles away, next town is 4 miles and has a grocery/hardware store, then about 22 miles the other direction to the next town that really has nothing retail (a few gas stations, auto service center, airport) and then about 30 to the next that has nearly anything you could need (with some exceptions)- Wal Mart, K-Mart, a couple medium-sized grocery stores, a couple theaters, stuff like that.

 

If ask $650. Having a washer/dryer is always huge no matter were you are.

I get $1200 for a one bedroom in the city.

 

I was thinking Around the $650/$700 mark, IF I decide to do it.

 

That sounds pretty reasonable compared to the others.

 

Have you ever rented before? If this is your first time as a ll, it's a good idea for you to learn about it and the law before you jump in.

Nightmare tenants can be a big problem, and they can be hard to get rid of depending on the laws in your state.

 

It's anyone's guess since we lack the necessary info to get an informative answer. An example, in my area, your home could fetch $2,000 a month but you wouldn't get more than $400-475 in other parts of the country.

 

Yep, was property manager for a few years not long ago. 2008 through 2011. About 2-1/2 years. I know what I've seen done to make a place more attractive, like cover water sewer trash, maybe add in basic phone & internet (no long distance). It adds the cost, which in turn ups the rent, but it also solves a couple of headaches tenants usually have. Here just to start an account for WST means $200 upfront. I cover that, no application fee required. MUCH cheaper for them. Cover basic phone & internet, that also solves a few problems as well. Doing that would push the price further up the scale to the $800+ mark. I would have a property manager mange this, so that's anywhere from 10-15% off the top. Mortgage comes next. Then the "perks" (WST & phone/internet). Getting money from it is nice, but I figure so long as it covers the payments and expenses, whatever is left can go into a slush fund. And make sure there is a requirement of renters insurance. They show proof they have insurance on their own stuff.

 

it really depends on the condition of the appliances/carpet, etc as well. If you're offering stainless steel appliances with hardwood floors you can get away with asking much more than ratty carpet and appliances from the 70s.

650 or 700 sounds like it would be reasonable compared to the rest of your area.

 

Omg I pay $2100 a month for approx 800 sqft here in NYC.

 

Seriously? My place is about 1,830 sq.ft., total. 938 sq.ft. living space and about 900 sq.ft other/usable space.

 

Actually I think enough was given. If there is more info you need, feel free to ask.

 

Yes, seriously lol. One of the many reasons I can't wait to move. This is the most expensive city to rent in. It list list in top 3, descending order goes: NYC, San Fran, LA, then San Diego. It's true that in some parts of the country, I could pay a 12 months lease at the rate of 1.4/mo's of my current. Cest la vie - I'm moving!

Btw where is your place located Logan? I think this might have been what TwisteYeti was getting at.

 

Logan already said it is in Utah in a very small rural community.

From what you said, Logan, I imagine that around $600-$700 would be fair considering it's furnished and all.

I live in Orange County, probably #5 on that list
I pay $1500 for a four bedroom house, but our rent is low for the area.
similar are going for about $2000/month.

 

absent pictures he provided us with the size/layout of the house, the geographic location as well as what the community was like and also provided similar rents in the area for comparison.

What more do you want?

 

What e7 said. I know many real estate people AND friends that have rented. Not only is credit/ background checking a good idea, it pays to get some distance from renters by engaging a management company to collect the rent for you. Here's why= They know you personally, MAYBE you'll get--" I'm a little short this time. I'll give you a weeks worth and then when my------------ comes in, I'll get you the rest." They went through it again and again--until they wised up. Or another friend that met a nice young girl with a baby and he figured she would be a decent renter and checked nothing. Comes by a month later and there are Harleys filling the yard, beer cans thrown around and a bike was disassembled in the front room, leaving grease on the rug. Tore stuff up. Much had to be replaced. Hard as hell to get "them" out.

You have --what sounds like a nice property there. You care about it and want to keep it nice. Take it from me--no one will care about it like you do. As a landlord, you can enter the house once a month with prior notice and you should do so until you are sure of the type of renters you have gotten. Good luck--hope this gives you something to think about.

Have to add: If you engage a management company--let them do the walk-through.