What does fair rental price mean?

A fair rental price for your property generally is the amount of rent that a person who isn't related to you would be willing to pay. The rent you charge isn't a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area.

Ask yourself the following questions when comparing another property with yours.

• Is it used for the same purpose?
• Is it approximately the same size?
• Is it in approximately the same condition?
• Does it have similar furnishings?
• Is it in a similar location?

If any of the answers are no, the properties probably aren't similar.