60 Words: 9 Tips for Establishing Rental Rates for Friends Renting Rooms

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It can be a challenge to decide what rental rates to establish for friends renting rooms. There is no one number that will be right. Even if everyone had the same room to rent, there are many different factors that you will want to take into consideration when coming up with these numbers. The following are some tips for establishing rental rates for friends renting rooms.
Ascertain the fair market value of the rental
First, you might want to try to get an idea of what the room rental should be. This will give you an idea of what should be charged if it was not a friend. You can find this out by comparing it to similar ones in the area. Look at the classified ads and try to get as close as you can to what you have. For some this will be the number that they go with – whatever they feel is fair and would charge someone whether or not they are friend.
Consider how much you need the money
You will want to think about how much you need the money. If you are very well-to-do and you are doing this more as a favor, then you might just ask for a very low amount of money. Obviously if you are very cash-strapped and really need help then you might be more stuck charging what you would charge anyone, especially if you would have rented the room out to someone else if you had not rented it out to your friend. If the money is nice but you are not really desperate you might want to charge him or her a little less than you would charge someone else.
Consider how much the friend can pay
If you have a friend who is in dire straits and you are renting the room to really help them out then you might rent it to them for very little as a favor to them. If they have a lot of money, then you might not feel that you need to give them a particularly inexpensive deal because they can easily afford it.
Consider the extra costs that will be incurred because of them living there
This may mostly have to do with items such as utilities. You will want to take into consideration any extra costs you will incur and make sure that those are at least covered.
There are many factors to consider when establishing rental rates for friends renting rooms. Consider the above tips when making your calculations.
Updated On: 04/23/2010 Published On: 04/23/2010 Best birthday gifts to put in a gift basket for a tennis player