Time is Money when Renting your Wellington Home

By
Real Estate Agent with Hansen Real Estate Group Inc.
Time is Money when Renting your Wellington Home

Is your Wellington Home for Rent sitting empty?  If so you are most likely losing a lot of money.  It is extremely important for Wellington landlords to look at the BIG PICTURE and price their home right when listing their home for rent.

Time is Money when renting your Wellington homeIf your monthly expenses on your Wellington home for rent are $2,000 a month, is it really worth trying to get a $100 more a month in rent?

$100 more a month will net you $1,200 more a year, BUT every month your home sits empty it's costing you $2,000.  

So let me ask the question again is it really worth trying to get a $100 more a month in rent?

If you are still not convinced that time is money when renting your Wellington home let's take a closer look at the numbers.

SUBJECT PROPERTY:
Market Value $2,200 a month
Monthly Expenses $2,000 a month

OVER PRICING OUTCOME:
List Price: $2,300 a month
Vacancy 3 months (which an over priced home is not guaranteed to ever rent)

$27,600 RENTAL INCOME ($2,300 x 12)
- $24,000 Annual Rental Expenses ($2,000 x 12)
- $6,000 Three months of Vacancy ($2000 x 3)
= -$2,400 LOSS

PRICED RIGHT OUTCOME:
List Price: $2,200 a month
Vacancy 1 month (It may take a few weeks to find a qualified tenant and if the home is located in a HOA it may take a more few weeks for the tenant to get approved)

$26,400 RENTAL INCOME $2,200 x 12)
- $24,000 Annual Rental Expenses ($2,000 x 12)
- $2,000 One Month of Vacancy ($2,000 x 1)
= + $400 GAIN

FINAL OUTCOME:
While it may be very appealing to try and get $100 or more a month for your Wellington home it may actually cost you more!


If you are looking for a Wellington Rental Agent to list your home for rent contact us today!  You can also visit our Landlord Resources Section to learn more about the process of renting your home.


Originally posted at
http://wellingtonhomesforrent.com/time-is-money-when-renting-your-wellington-home/

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Florida Palm Beach County Wellington
Groups:
Palm Beach County Pros
Palm Beach Florida
Tags:
wellington rental agent
wellington landlord resources
over pricing your wellington home

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,238,046
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Explaining OVERpriced rental units to homeowners is an "art"....I advise clients I will be reducing the rent $50 every 2 weeks until it is rented....If I start at THEIR rent, I can get to the market rent fairly quickly that way.

Feb 26, 2012 07:51 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,333,948

Michelle Gibson

REALTOR
Have a Wellington Real Estate Question?
*
*
*
*
Spam prevention

Additional Information