How to Express Rental Value As a Percentage of Overall Value
- 1). On a calculator, punch in the number that represents the amount charged to the tenants -- the rental value. This number will generally be between $600 and $3,000, but could be more or less, depending on the market.
- 2). Divide this number by the overall value, or how much your land and improvements, such as a house, shed and fixed decorations, are worth. You can get this number from a professional appraiser. You can also get an estimated appraisal from a licensed real estate professional, but their numbers may not be as accurate. If you just purchased the house, the value is the price you bought it for.
- 3). Read the resulting decimal number. Because you divided a smaller number by a larger number, your result will always be a decimal. Move the decimal two places to the right, and this is your percentage. For example, if your overall value is $100,000 and you charge $1,000 per month, the rental value is 1 percent of the total value: 1,000 divided by 100,000 equals 0.01. When you move the decimal two spaces to the right, you end up with 1, the percentage. If you charge $1,800 on a property worth $320,000, you make 0.56 percent on your property, which is relatively low.