When determining what is a good reasonable monthly rental what is a good approach?
I bought a 3/2 home in south Florida Fort Lauderdale, home is older in that it has not been upgraded with granite counter top or stainless steel appliances but everything is functional and in good shape.
There is no other home nearby like it available for rental that has it’s size.
It is 1600 SF a 3 bedroom 2 bath and a 1/3 acre lot.
However a 800 SF 2 bedroom 1 bath nearby is asking $2300 a month for rental, it is totally updated with a nice kitchen.
My agent said the amenities (updated kitchen) is more important then more space and more rooms, and people are more likely to pay a higher rent. So he suggested a rent of $1600 a month.
Really? One would pay $700 extra a month for an updated kitchen, and a place that is 700 SF less, 1 less room 1 less bath?
Best source of comps is calling owners of other reasonably similar properties on craigslist or in the newspaper. Another method is to join a local real estate investment club and talk with other landlords of similar properties. However, you need to remember, just like with sales, you want the “sold” price (what it actually rented at) rather than the “asking” price.
miamicuse,
If your prospective tenant has been watching HGTV those granite counter tops are gonna matter. And the new stainless appliances. Younger yuppie tenants seem more concerned that their surroundings reflect their exquisite taste. So they can show off to friends.
So I tend to agree with your Realtor. If the rent starts getting close to a mortgage payment families will buy rather than rent.
You have another option. Furnish that home and you will get the rent you want.
Furnishedowner