Wednesday, June 15, 2011

What is Market Rent?

Not many people know how to assess market rent for their rental property. Talking to someone on Monday, I asked them "How much rent would you like to get for this property?". Their answer was "We would like to get $300 per week". I almost choked. We are renting a far inferior (and I say that with authority, I own it) property close by for $330. I assessed their property to be worth at least $380 per week, and frankly, it would probably exceed the $400 mark. In theory, I could rent it from them and make a tidy $5000 profit every year by subletting it. Sweet. That is how much money they would be giving away. Five thousand dollars. Say it slowly now. Five big ones.

Fortunately for them, they were smart enough to get an expert opinion about the properties market value, and they will be thousands of dollars a year better off.

Do you think you can't afford property management on your budget? Ask us for a rental assessment, it's free, and it could pay you significant dividends. More money for less work for you, that's the best combination of things ever!

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