Is your Wellington Home for Rent sitting empty? If so you are most likely losing a lot of money. It is extremely important for Wellington landlords to look at the BIG PICTURE and price their home right when listing their home for rent.
$100 more a month will net you $1,200 more a year, BUT every month your home sits empty it’s costing you $2,000.
So let me ask the question again, is it really worth trying to get a $100 more a month in rent?
If you are still not convinced that time is money when renting your Wellington home let’s take a closer look at the numbers.
SUBJECT PROPERTY:
Market Value $2,200 a month
Monthly Expenses $2,000 a month
OVER PRICING OUTCOME:
List Price: $2,300 a month
Vacancy 3 months (which an over priced home is not guaranteed to ever rent)
$27,600 RENTAL INCOME ($2,300 x 12)
- $24,000 Annual Rental Expenses ($2,000 x 12)
- $6,000 Three months of Vacancy ($2000 x 3)
= -$2,400 LOSS
PRICED RIGHT OUTCOME:
List Price: $2,200 a month
Vacancy 1 month (It may take a few weeks to find a qualified tenant and if the home is located in a HOA it may take a more few weeks for the tenant to get approved)
$26,400 RENTAL INCOME $2,200 x 12)
- $24,000 Annual Rental Expenses ($2,000 x 12)
- $2,000 One Month of Vacancy ($2,000 x 1)
= + $400 GAIN
FINAL OUTCOME:
While it may be very appealing to try and get $100 or more a month for your Wellington home it may actually cost you more!
If you are looking for a Wellington Rental Agent to list your home for rent contact us today! You can also visit our Landlord Resources Section to learn more about the process of renting your home.
Originally posted at: http://wellingtonhomesforrent.com/time-is-money-when-renting-your-wellington-home/
Time is Money when Listing your Wellington Home for Rent
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