Rentals - Posted by Chuck in Ohio

Posted by Gary (VA) on August 18, 2003 at 14:33:33:

Careful. HUD fair market rents also include utilities costs. In my area they are always low. Find the real estate firm in your area that has the largest property management department. (or the most properties under management). Talk to the manager. if you can describe the property, condition and location he can probably give you a very accurate estimate of a fair market rent.

Rentals - Posted by Chuck in Ohio

Posted by Chuck in Ohio on August 18, 2003 at 05:28:19:

Hello everyone. What is the best way to find out the correct amount of rent to charge? I have a 2 bedroom 1.5 bath with deck and full basement that I moved in a few months ago. I am not content and am considering moving in with a buddy of mine. It is a condo and in a good neighborhood. I am not sure how to find out the going rate of how much rent to charge. Also. it is the only property I own. What would be the tax consequences? Say if I ask 800 per month, is the entire $9600. yearly income all taxable income? Any help would be appreciated.

Re: Rentals - Posted by ken in sc

Posted by ken in sc on August 19, 2003 at 07:12:24:

You could call 3 or 4 property management firms in your area and ask them what rent they could get you for that condo. Be aware that like RE agents, what they say might be a little high as they are trying t get your business. Ask them if they manage any units in that project and what they are rented for.

As far as taxes, get a copy of the scedule for rental property from the iRS - I believe it is schedule E. It is not that hard to fill out, if you need help ask your accountant. Then, from now on you will know how it works.

Re: Rentals - Posted by Brent_IL

Posted by Brent_IL on August 18, 2003 at 17:56:47:

Are there any “For Rent” advertisements in the newspaper that could give you an indication of the market rates?

The income is taxable, but expenses are deductible. Paper losses, like depreciation, reduce taxable income, but not cash flow. If you’ve been in the property for only a few months, taxes will probably be minimal.

Re: Rentals - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on August 18, 2003 at 17:36:54:

Pick up the classifieds in your area and make a few calls on similar type units. If you want really good renters, then price $25- $50.00 below market. If you want poorer type tenants, then advertise a higher rent.

Good Luck,

Re: Rentals - Posted by Randy

Posted by Randy on August 18, 2003 at 12:48:00:

Here is a link to Hud for Fair Market Rents Nationwide

Re: Rentals - Posted by Randy

Posted by Randy on August 18, 2003 at 10:46:17:

You may want to consult your tax preparer for specifics, but a general answer to your question is yes the rent received is income; the mortgage interest paid is deductible as well as expenses, depreciation, maintenance, advertising, vacancies?. If you make a profit (I rarely do on paper) then you pay taxes it?s the price we pay to live in America.