You should rent your home at no less than 1 percent of its value for values up to about $125,000 and 1.1 percent up to about $100,000, according to Property Observer. The rental estimate percentage decreases considerably with higher home value rates.
Prior to setting your rate, it is important that you conduct some personal research. You should analyze the market for comparable rental homes, check online and look at the local rental guidelines to know what other landlords are charging.
If you do not want to gamble, call the phone numbers listed for similar homes in your locality a few days after they were first listed, and discover if tenants have occupied yet. If they rented too quickly, it means they were very inexpensive. If you find the rental homes being vacant for a long time, it means they are priced too high.
To get an accurate estimate is a delicate balance. If the house is in a high-demand area, you can start with a higher price, but you may have to lower the rent if you do not find renters. You should avoid charging anything less than 0.8 percent because it is not enough to give any buffer against losses in the event of vandalism, abrupt move-outs and other adverse scenarios.