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What’s reasonable rent for your property? The Key to Investing!

By
Services for Real Estate Pros with Platinum Properties Investor Network

This one is a biggie. You finally decided to take action through Platinum Properties Investor Network and start using real estate investing to create the level of wealth that makes you veerrry comfortable. You know from reading hundreds of blog post and listening to dozens of hours of The Creating Wealth Show that rental property is where the historically proven profits are.

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But now you find yourself the actual owner of a rental house sitting nice and pretty on a piece of land - how are you going to price it to rent out? Don't worry. It's not as hard as you think. Here are some ideas.

1. Property Management - There might be no better resource than the property manager we recommend to you. Don't think you have to go it alone on this. There's a very good reason you might want to stick with our suggestion. Platinum Properties Investor Network moves a lot of clients through local markets. We've already done the research and chosen management who WILL take care of you. It's to their distinct advantage NOT to alienate you. We will hear about it and we will let them know we don't like it. Local management companies should have a great feel for how much rent to charge.

2. Check comparable prices in the area on a website like www.craigslist.org.

3. Price your property a little high at first. If the phone doesn't ring, lower it $50 or so until it does.

The thing to keep in mind is that it might be worth receiving a little less in monthly rent to keep turnover low. A stable, timely renter paying a little below market rate is better than getting top dollar for a month or two from a flake who'll vacate and leave the place a mess.

For more real estate investing tips and techniques sign up for my free CD: http://www.jasonhartman.com/freecd/ 

Comments (6)

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

....as many PMs don't use Craigslist, determining comparable rents from other newbie landlords' desired rents from that source is problematic.   Rental comps should be determined from professional recommendations BASED on the size, location and condition of the property.....the time of the YEAR is also important in many localities * especially in "university/college" towns.

Oct 16, 2009 05:26 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Jason, this is good advice for renting a property. A little less with a better quality tenant is so worth it in the long run!

Oct 16, 2009 05:26 AM
Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

Hi Jason.  And it's also good to keep in mind that it takes a very long time to make up for a month's vacancy at that $50 rent premium you mentioned.

Oct 16, 2009 08:15 AM
Jason Hartman
Platinum Properties Investor Network - Costa Mesa, CA

Thank you all for your comments! It seems we are all on the same page!

Oct 19, 2009 11:02 AM
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