By Property Management Systems
PORTLAND, Ore. – Are you planning on renting your Portland Oregon home for the first time and are not sure what you should rent it for? If so, you’ve come to the right place!
In this article we will share with you tips you can use for finding out how much your Portland home should rent for.
Step #1 – Search The Internet For Comparable Portland Oregon Rental Properties
The first thing you need to do to find out what your Portland Oregon Home is really worth is to search the internet for comparable homes on the rental market.
This step is essential because comparable research will give you the opportunity to find out what other homes in the area are renting for that have the same number of bedrooms, bathrooms and amenities which are similar to what your home has.
Step #2 – Visit Local Rental Properties
Another great way to find out what you should rent your Portland Oregon Home for is to visit other rentals in the area and tour them in person because this will give you the opportunity to see what tenants are looking for in a rental property besides a rental that matches their price point.
Step #3 – Use These Tips For Determining The Fair Market Rent
When you’re trying to determine how much rent to charge, there are a number of things you’ll need to think about. A good first step is figuring out what your home’s currently worth in the market. That amount could be different from the price you originally paid for your home.
You could use a website like Zillow to estimate your home’s value. But it might be best to find a home appraiser who can give you a more accurate assessment of what it’s actually worth, based on the condition of the home, local home sale prices and where the home is located.
The amount of rent you charge your tenants should be a percentage of your home’s market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home’s value. For example, for a home valued at $250,000, a landlord could charge between $2,000 and $2,750 each month.
If your home is worth $100,000 or less, it’s best to charge rent that’s close to 1% of your home’s value. If your house is more expensive, however, (meaning that it’s worth over $350,000) it’s a good idea to charge less rent so that you can attract more buyers. Charging rent that’s too high will make living in your house unaffordable for many people.
Other than your home’s worth, you’ll also need to consider what landlords are charging for similar rentals in your area. If the rent you want to charge is unreasonable compared to what everyone else around you is charging, you might struggle to find a tenant who’s willing to commit to your terms. A website like Trulia or Craigslist can show you how the rental rate in your head stacks up against the rates your competitors are offering.
If you’re renting out your house so you don’t have to pay for your home loan, the rent you charge has to be at least equal to the cost of your monthly mortgage bill. Don’t forget to factor in an estimate of repair costs, taxes, homeowners association fees and insurance when you’re deciding what to charge.
One other thing to keep in mind: You can’t necessarily choose whatever rental rate you want. Some states limit what landlords can charge for rent, security deposits and late fees. Rent control laws exist, for example, in places like New York, Maryland, California and Washington D.C.
Hire A Portland Oregon Property Management Company
Last of all, but most important, once you’ve determined what you should rent your Portland Oregon home for the next step is to hire a professional property management company.
If you’re “on the fence” about hiring a property manager, here are a few important reasons to hire one to manage your rental property in Portland Oregon.
#1 – You Will Save More Money Each Month
How many hours per month do you spend on the phone with tenants or in the car traveling to your rentals?
You will save money each month by using a professional property management company for your Oregon Rental Properties because, we will be your team to handle all of the day-to-day issues which come from managing a property so you don’t have to
#2 – More Time in Your Schedule
With less time being spent managing your properties, taking care of tenant issues, or collecting rent, you will have MORE TIME to enjoy your life, family and also the benefits which come from owning rental property.
#3 – GROW Your Portfolio
Last of all, but most important, with more time and energy on your side each month you will be able to finally GROW your property portfolio and generate more income from your properties each month than you currently are.
Tenant issues, repairs and problems will be a thing of the past as you look to the future and generating more income by purchasing another property.
Contact Property Management Systems
For professional property management in Portland Oregon contact Property Management Systems today by calling us at (503) 515-3170 or click here to connect with us online.