Hi Steven, We just moved to Kathmandu from India recently and went up there for a week to check out the neighborhoods and find a house.It can be kind of difficult finding a place just because it's not as well organized as in the US or UK but the newspapers have classifieds sections with listings and numbers for rental agents.
We found a house our last day on a seven day holiday, $425 a month for a seven bedroom, four bath, four floor mini-mansion in a good neighborhood with a huge garden full of rose bushes behind compoud walls.
Needless to say we were pleasantly surprised :)
There were three or four other options available that day, all of which were suitable and less than $500 US per month, but this one was the best with lots of windows, etc.
In any case, I'd suggest finding a place in advance or staying in a good hotel while you look. There is the Hotel Courtyard in Thamel, excellent service, etc. and the owner is so great about translating for you if need be :)
Good luck!
Also, we were happy to find a HUGE supermarket, almost like a Target style with everything from Brie and wine to washing machines in a shopping district very nearby...so you can literally get everything you need to be comfortable in Kathmandu.
Do keep in mind that Nepal tourist visas allow only 150 days in the calendar year - with monthly extensions required for $30 US per person. They make it quick and easy though, you can get it done in a matter of hours.
