How much should I charge for rent on a 2 Bed 2 bath 50k house? If renter pays utilities as well?

[Cory Mickler]

I recently purchased a house rehabbed the living room and water damage and now the house is ready to be rented out but how much should I rent it for? It is close to a grocery store,  school and a bar and and it is valued at around $50k and I am wondering what is reasonable rent. it has 2 floors 2 bed rooms a living room dining room and kitchen. The house is 1500 sq ft and it has close to half an acre of property. everything is brand new and finished. brand new stove and rerigerator. new sink toilet and bathtub. would $350 a month be to low or would $850 a month be to high? 

I have seen some similiar 3 bed 2 bath houses going for as high as 1500 a month without utilities or 1250 with with utilities. so i am assuming 850 would be in the ballpark of what I should charge for rent but I want the renter to also pay utilities so what would be a fair price?

[Loren Whitney]

@Cory Mickler

Congratulations on the purchase. I'm looking for another unit myself. 

I'm not familiar with your area at all but I have a few simple suggestions. You need to research what your market rents are today. This is the typical pricing question that all marketers face. 

Here's how I would start figuring it out:

1. Check Craigslist and see what other people are asking for similar properties close by.

2. Check the local newspaper and classifieds for similar listings.

3. Visit rentometer.com, a rent comparison website.

4. Go check out local rentals and pose as a potential tenant. This way you can see first hand what the competition looks like. 

At the end of the day, the idea is to offer a better deal overall. 

I haven't read any real estate specific books on marketing rental properties but any marketing book on the concept of pricing and value will give you good ideas.

Good luck!