Do you want to know about the factors for determining the right rent charge? You need to know a few basics before you get into the business. Picking up a tenant and determining the rent for your house is a tough job and you must take your due time with it. However, handing your house over to a tenant is almost always a good idea because it can help you not only pay your mortgage loan but also, in this way you can get a step closer to your financial goal. You can save up and invest in some other property, and we all know how the real estate business is successful.
How to find out the right amount of rent for your house?
It is important to set a good rent so that your house gets rented as soon as possible and the property does not get wasted. When tenants are living in a house, it is well taken care of, and also, you get good money out of it. Even if you are planning to get a new house, you could use the equity to pay the down payment, and it will be a huge help while relocating.
What is the law linked to renting a house?
The rent of a house must be determined by the percentage of the house’s market value. A tenant has to pay an amount that equals falls in the range of 0.8% to 1.1% of the market value of that house. However, some people call it a 2% rule where the landlords are allowed to charge 1-2% of the market price of the property.
Don’t Miss the Insurance
Tenant insurance is basically an insurance plan for the renters who rent their homes or apartments. This plan includes insurance against any theft, fire damage, or personal injury that happens to the person on the rented property. Surex is providing excellent insurance services all over Alberta. The trusted and experienced dealers guide you properly throughout the whole process. You can visit https://www.surex.com/insurance/tenant/alberta for more information.
Invest before renting
In case you want to avail maximum profit from your property, you must be willing to invest in it first. Before you put a house out for rent, you have to pay attention to the details like the paint, the washroom condition, the kitchen condition, and the supply of water, gas, and electricity. Also, the location of the house is also a serious matter. However, the rent can help you with paying expenses like maintenance costs, homeowners insurance, and property taxes.
How much should I charge for rent?
In case you want to figure out the most appropriate rental price, you need to keep in mind a few factors. These factors will help you get the most out of your property.
? Location of the house matters
What are the factors that attract tenants? Prime location, basic amenities, distance from market, roads, distance from hospitals and restaurants, gyms, etc. if you are lucky to have all these facilities close to your property, then you are most likely to get a better rent charge, probably more than enough to pay your mortgage and other maintenance costs.
? Look around for other landlords.
You must check on what the other landlords in the area are charging for their property. Though every house has its own pros and cons, you must stay close to the range of the rent that other landlords charge around you. It raises the bar for you as you have to be responsible for providing all the facilities that the other landlords in that area have to offer.
? Mind the season
For getting the best idea about what will be the best time around the year to put your house out for rent, think like a tenant. People usually move in spring or summer as the school year ends and it is easier to relocate in this season. However, in winter, it is very tough to shift to a new place, and also, most people prefer to stay in their comfort zone in cold weather.
? Know the worth of your property
It is definitely not essential to stick to the percentage rule if you think that your property is worth spending a bit more. If it is well maintained and can be a nice home for a family, you can fluctuate the rental price a little bit. However, you must stay fair and square so that you get the best value for your investment.
How to get the best rental price?
If you want to get the most suitable price for your property, you must invest in it first. Make sure you take care of the following things,
? The paint of the house shall be intact as it gives a very fine look.
? There should be a parking area of adequate size
? There should be a short walking distance to school, hospital, market, restaurants, parks, and malls.
? There should be an uninterrupted supply of gas, electricity, and water.
What about the annual appraisal?
As a landlord, you are allowed to raise the rental price per month, in accordance with what the government allows you. As you are the one responsible for paying the property tax, that does give you the right to increase the rent as there is an increase in the tax every year.
The best way to get the best rental price is to be ready to invest and then wait for results. Patience is the key. Don’t fall for unfair deals in a hurry and wait for the right one to lock in your investment. Also, make sure that you take care of the paperwork and get all the formalities done in person.