09-13-2009, 05:19 AM
I would just look around on craigslist for something else in the area, use your judgement to adjust for what you have in comparison. Then run an ad and see if you get response. You can always lower it. In the current market, I would think erring a little on the low side to ensure that you can find a tenant, and perhaps have the choice of a few good prospects, you will come out better in the long run. Every month that you sit vacant looking for an extra $25 or so, could take 2 years to recover at the higher rate ...
As far as the 1% rule of thumb, I think it has some truth to it, but who even knows what their current value is on anything? It may be more accurate that something would sell at 100 times what it would rent for, rather than the other way around.
As far as the 1% rule of thumb, I think it has some truth to it, but who even knows what their current value is on anything? It may be more accurate that something would sell at 100 times what it would rent for, rather than the other way around.