Is there any program or formula to use to determine what you could possibly rent a home for. Say a 2 Bedroom 1 Bath 700 SQFT. Home.

I'm looking at one to buy but then use it as a rental unit.

I'm in South Bend Indiana
Thanks

There is no set formula as it is all market driven and will be diffeent in each area.

Contact a local appraiser in your area and they should be able to give you a good snapshot of rents for similiar properties in your area.

Yes there really is no set way to determine the market value for rents.

Here in Minnesota, what we generally do is take a look at the competitive houses, condos, townhomes for rent and price accordingly. You should be able to find a number of comps in the newspaper as well as online.

Generally I like to figure a certain dollar amount per bedroom. Here in the Minneapolis real estate market, you are looking around $400 a bedroom (approximately.) I hope this helps!

I like to set my rental rates slightly below market. So do comps on the existing market. Find out what the actives (your competition) are doing and undercut them. I'd rather get $25-50 a month less and have my unit fully occupied than have it vacant for months at a time while I hemorrhage cash and leave my property open for vandals, thieves, or other mishaps that are far more common in vacant homes than occupied homes.

Joe

Is it correct that the monthly rents should increase now extremely? I heard about that - the financial crises should evoke increasing rents as the banks don't give credits anymore ... i hope that this whole crises won't effect us too bad ...

Search the rentals section at craigslist for comps.

Ok, i will do that, that means there is no gerneral anwser to that question I guess ...

Here is a website where you can get a quick "idea" of the range people are asking in the area.

http://www.rentometer.com/

It's by no means a complete solution as there are a lot of variables, but it can give you a good starting point.

Definitely, Craiglist is the best place to find one.