How to Determine Fair Market Rent
My fiancée and I purchased a small starter home (2 Bed-2 Bath New Construction) approximately a year ago using an FHA loan. We are wanting to upgrade into a larger home and are trying to decide if renting our first home is feasible or not. I am having a hard time determining what our market would allow us to ask for rent. I would appreciate any advice on figuring out what we could charge for rent so that we can decide if selling or renting is our best option.
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#3 Creative Real Estate Financing Contributor
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Ask an agent
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Or a property manager
Zillow Rental Manager has a good tool---https://www.zillow.com/rental-manager/price-my-rental/; you can try rentometer--https://www.rentometer.com/, too!
Those can give you a good starting point.
Act like a prospective tenant. You might search the internet or drive around looking for For Rent signs. While these are 'listed' and not 'rented' amounts, they will give you a good idea. List your home on the internet for a similar price and state that it is coming soon. See what interest you get.
As far as determining your best option of renting or selling, ask yourself if you want to be a landlord. Do you want the hassle that comes with leasing and fixing problems? Will you get a property manager for it?
If your long term goals include investing, this is a great opportunity to start, with a property you already own. Remember to consider the equity your tenant is building for you when you compare rent vs sale.
