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Updated over 5 years ago,
Renting office space from myself. How much to charge ?
We are closing on a 7 unit office building next week. The building is completely vacant so I am purchasing it with private investors funds. I'm going to do about a $20,000 rehab then get at least up and try to refinance it quickly.
I'm going to use one of the spaces for my new office on my real estate business. I have a second business that I am contemplating moving into one of the lower units. My thinking is if I can get two tenants immediately (which would be both my businesses) then I am well on my way to getting it refinanced because I only have to fill a few more units before I bring it to the bank.
the question is how much should I charge myself for rent? I initially thought well below market rents but now that I am wanting the numbers to look good for the banks should I just charge market rent since the payment will be going to my business?