Some landlords are happy doing as little as possible to keep their properties rented. If you intend to go this route, expect to price your house toward the low end of the rental market. If you're willing to make a little more effort, you can command a higher rental price. Start by determining the market value of your home.

Market Value

Find the market value for your home by researching rents for other homes in the neighborhood. Compare apples to apples. Your three-bedroom home will go for a higher rent than a one-bedroom apartment. Check the classified ads in newspapers and check online at places like craigslist.org and realtor.com. If you have the time, do your research over a number of months to account for fluctuations in the market and listings that are priced too high or too low. Local rental agents may be willing to talk to you about their experience renting homes similar to yours, especially if there's a possibility that you will hire them to manage your property. The location of your home is critical in making a decision about how much rent to charge. If it's near public transportation or parks or is convenient to shopping and other amenities and services, you can expect to command a higher price. Families might be interested in being near schools, but other potential tenants might be put off by the noise and activity schools generate.

Factors

Take into consideration factors like yearly taxes and your mortgage payment for the property . Can they be included in the rent in their entirety without pricing your home out of the market? Some rentals include the utilities in the monthly charge, which makes them more desirable to tenants. Calculate how much an average year's cost is for electricity, water and heating, and divide that by twelve to determine how much to add to the rent to cover that. If it prices you above other properties in the area, rent the house without utilities included.

Increasing Value

Some simple improvements can raise your house's rental value. Paint the home, tidy up the landscaping and make minor repairs. Include a washer and dryer. If the property is in an area that commands high rents, consider upgrading kitchen appliances and putting in nicer fixtures. Your reputation as a landlord can help or hurt you, if you have multiple rental properties. A good landlord can command higher rents simply because tenants understand that problems will be taken care of and they'll be treated fairly. Taking care of issues that arise with the house as they occur and renting to tenants who will respect the property goes a long way toward keeping value in the home for future rentals.

Source:

Information on Fair Market Rents

Rent Analysis Tool

Neighborhood Rent Comparisons