Rental Comp Determining Factors

[Zac Bowden]

Hey y'all,

I'm new to this real estate game and new to posting on BP. I am wondering if anyone considers square footage or a property's age when determining rental prices. For instance, would an older or smaller home still rent at a similar rate to the market average given that they had the same amenities and appliances? If these are not things you consider when determining rent for your property, what are some factors you compare or reference?

I appreciate any input, cheers!

[Joe Funari]

@Zac Bowden when running rent comps here in the Dallas/Ft. Worth area you look at plus or minus 300 square feet to get "comprable" rentals. You don't look at age for rentals. But making sure that the comps you pull have similar finishes, updates, appliances, etc. But also make sure you are comparing the same number of bedrooms, bathrooms, and garage spaces too. A good rule of thumb is get 6 total comps and pull the average rents. You should be able to lease quickly based on these averages.

Also, Texas is a non disclosure state. So rent and sales data isn't public info. So third party sites, such as rentometer, you need to take with a grain of salt. Also, you need a good understanding of statistics to remove the outliers when looking at rent data on that site. Its amazing the pricing swings you get. Your best bet is to work with an investor friendly realtor that can pull comps. Or a property management company. They will be able to pull accurate rent or sold comps too.