{"id":10930,"date":"2019-12-11T14:12:22","date_gmt":"2019-12-11T14:12:22","guid":{"rendered":"https:\/\/kenyahomes.co.ke\/blog\/?p=10930"},"modified":"2019-12-12T05:43:50","modified_gmt":"2019-12-12T05:43:50","slug":"how-to-figure-out-how-much-you-should-charge-for-rent","status":"publish","type":"post","link":"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/","title":{"rendered":"How to Figure out How Much You Should Charge for Rent"},"content":{"rendered":"\n<p><a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">Renting out your house<\/a>&nbsp;might be worth considering, especially if you\u2019re ready to relocate and you\u2019re opposed to selling. Picking up a tenant could help you pay off your mortgage more quickly.&nbsp;Then, you could put the money you\u2019ve earned toward a financial goal, like perhaps into a retirement account. If you\u2019re&nbsp;not sure what to charge for rent, we\u2019ve got some&nbsp;factors you\u2019ll need to take into account.<\/p>\n\n\n\n<p style=\"color:#77c720;font-size:11px\" class=\"has-text-color\"><a href=\"https:\/\/kenyahomes.co.ke\/blog\/net-rental-yield-calculation-for-real-estate-investors\/\">See Also: Net Rental Yield Calculation for Real Estate Investors<\/a><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>What to Consider Before Renting out Your Home<\/strong><\/h5>\n\n\n\n<p>Deciding to <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">rent out your house<\/a> rather than sell it might make sense for various reasons. Homes can be tough to get rid of, particularly if your asking price is too high or your home listing isn\u2019t visible enough. And selling might not be a viable option if you haven\u2019t built up enough equity in your home. If you\u2019re looking to purchase a different home, you could take your equity and use it to make a down payment.<\/p>\n\n\n\n<p>But allowing someone to <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">rent&nbsp;your home<\/a>, even temporarily, is a big deal. For one, are you ready to become a landlord? Regardless of how responsible your tenants might initially seem, they could end up destroying your home or bringing down its overall property value. And you\u2019ll need to be prepared to have a flexible schedule so your tenants can reach you if a toilet clogs or a pipe bursts.<\/p>\n\n\n\n<p>Turning your home into an investment property could be a financially risky move as well. You might have to spend money to fix up the property before you can rent it out. While there are many&nbsp;tax breaks available to landlords, it\u2019s best to plan on paying for expenses such as property taxes, maintenance costs and homeowners insurance. Plus, you\u2019ll be on the hook for paying the mortgage as well if your tenant suddenly moves out and it takes time to find a replacement.<\/p>\n\n\n\n<p>On the other hand, <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">renting out your home<\/a> could provide you with enough money to pay off your mortgage. That could be a great way to rake in extra cash if you\u2019re waiting for your home\u2019s value to go up. You could then use the remainder of your earnings as profit or savings.<\/p>\n\n\n\n<p style=\"color:#77c720;font-size:11px\" class=\"has-text-color\"><a href=\"https:\/\/kenyahomes.co.ke\/blog\/5-myths-about-renting-out-your-home-you-should-stop-believing-immediately\/\">See Also: Myths About Renting Out Your Home<\/a><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>How Much Should I Charge for Rent? &nbsp;<\/strong><\/h5>\n\n\n\n<p>When you\u2019re trying to determine how much rent to charge, there are a number of things you\u2019ll need to think about. A good first step is figuring out what your home\u2019s currently worth in the market. That amount could be different from the price you originally paid for your home.<\/p>\n\n\n\n<p>You could use a website like <a href=\"https:\/\/www.kenyahomes.co.ke\/\">Kenya Homes<\/a> to estimate your home\u2019s value. But it might be best to find a&nbsp;home appraiser&nbsp;who can give you a more accurate assessment of what it\u2019s actually worth, based on the condition of the home, local home sale prices and where the home is located.<\/p>\n\n\n\n<p>The amount of<a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\"> rent you charge your tenants<\/a> should be a percentage of your home\u2019s market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home\u2019s value. For example, for a home valued at 4,500,000, a landlord could charge between 20,000 to 40,000 each month.<\/p>\n\n\n\n<p>If your home is worth 10,000,000 or less, it\u2019s best to charge rent that\u2019s close to 1% of your home\u2019s value. If your house is more expensive, however, (meaning that it\u2019s worth over 20,000,000) it\u2019s a good idea to charge less rent so that you can attract more buyers. <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">Charging rent<\/a> that\u2019s too high will&nbsp;make living in your house unaffordable&nbsp;for many people.<\/p>\n\n\n\n<p>Other than your home\u2019s worth, you\u2019ll also need to consider what landlords are charging for similar rentals in your area. If the <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">rent you want to charge<\/a> is unreasonable compared to what everyone else around you are charging, you might struggle to find a tenant who\u2019s willing to commit to your terms. A website like buyrentkenya or jiji.co.ke can show you how the rental rate in your head stacks up against the rates your competitors are offering.<\/p>\n\n\n\n<p>If you\u2019re renting out your house so you don\u2019t have to pay for your home loan, the rent you charge has to be at least equal to the&nbsp;cost of your monthly mortgage bill. Don\u2019t forget to factor in an estimate of repair costs, taxes, homeowners association fees and insurance when you\u2019re deciding what to charge.<\/p>\n\n\n\n<p>One other thing to keep in mind: You can\u2019t necessarily choose whatever rental rate you want. There is a limit what landlords can charge for rent, security deposits and late fees. <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>How Do I Put My House up for Rent?<\/strong><\/h5>\n\n\n\n<p>When you\u2019re ready to find tenants to <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">rent your home<\/a>, you can ask a real estate agent to list your house for you. But that comes with a cost. You\u2019ll owe your agent commission, whether that\u2019s equal to one month\u2019s rent, or another percentage.<\/p>\n\n\n\n<p>If you want to publish your own real estate listing, you can upload it onto a website like <a href=\"https:\/\/www.kenyahomes.co.ke\/\">Kenya Homes<\/a> for free. You can make flyers to pass out or use your social media accounts to let everyone know you\u2019re looking for tenants.<\/p>\n\n\n\n<p>Before you hand over the keys to your house, it\u2019s a good idea to be sure that your prospective tenants have solid financials and can afford to keep up with their rent.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Final Word<\/strong><\/h5>\n\n\n\n<p>If you\u2019ve chosen to <a href=\"https:\/\/kenyahomes.co.ke\/blog\/renting-or-selling-your-house-what-to-consider\/\">rent out your house<\/a> instead of selling it, you can\u2019t charge rent solely based on the size of your mortgage payments. Picking a rental rate based on the total cost of turning your home into an investment property and on area rents can ensure you make a decent return and easily find tenants.<\/p>\n\n\n\n<p style=\"color:#77c720;font-size:11px\" class=\"has-text-color\"><a href=\"https:\/\/kenyahomes.co.ke\/blog\/what-is-residential-rental-income\/\">See Also: What is Residential Rental Income Tax?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Renting out your house&nbsp;might be worth considering, especially if you\u2019re ready to relocate and you\u2019re opposed to selling. Picking up a tenant could help you pay off your mortgage more quickly.&nbsp;Then, you could put the money you\u2019ve earned toward a financial goal, like perhaps into a retirement account. If you\u2019re&nbsp;not sure what to charge for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[66],"tags":[],"class_list":{"0":"post-10930","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-renting"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Figure out How Much You Should Charge for Rent - Kenya Homes<\/title>\n<meta name=\"description\" content=\"As a new landlord, how much will you charge rent for? 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This requires alot of market research on what other landlords are charging as well as market value\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/\" \/>\n<meta property=\"og:site_name\" content=\"Kenya Homes\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-11T14:12:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-12T05:43:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kenyahomes.co.ke\/blog\/wp-content\/uploads\/2019\/12\/hands-holding-word-rent_53876-30907-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"626\" \/>\n\t<meta property=\"og:image:height\" content=\"354\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kenya Homes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kenya Homes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/\"},\"author\":{\"name\":\"Kenya Homes\",\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/#\/schema\/person\/4b0235026e91b555cb0ec6e088aec6ae\"},\"headline\":\"How to Figure out How Much You Should Charge for Rent\",\"datePublished\":\"2019-12-11T14:12:22+00:00\",\"dateModified\":\"2019-12-12T05:43:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/\"},\"wordCount\":1023,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/kenyahomes.co.ke\/blog\/wp-content\/uploads\/2019\/12\/hands-holding-word-rent_53876-30907-1.jpg\",\"articleSection\":[\"Renting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/\",\"url\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/\",\"name\":\"How to Figure out How Much You Should Charge for Rent - Kenya Homes\",\"isPartOf\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/kenyahomes.co.ke\/blog\/how-to-figure-out-how-much-you-should-charge-for-rent\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/kenyahomes.co.ke\/blog\/wp-content\/uploads\/2019\/12\/hands-holding-word-rent_53876-30907-1.jpg\",\"datePublished\":\"2019-12-11T14:12:22+00:00\",\"dateModified\":\"2019-12-12T05:43:50+00:00\",\"description\":\"As a new landlord, how much will you charge rent for? 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