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User Stats

5
Posts
1
Votes
Cory Shannon
  • Saline, MI
1
Votes |
5
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Rent

Cory Shannon
  • Saline, MI
Posted

How do I find out an areas average rent, so I dont over charge, or under charge on my rental?

User Stats

402
Posts
177
Votes
Josh Mitchell
  • Real Estate Agent
  • Naperville, IL
177
Votes |
402
Posts
Josh Mitchell
  • Real Estate Agent
  • Naperville, IL
Replied

@Cory Shannon check out other listings, make calls to places that are similar to yours and act as a potential renter. Check out newspapers, craigslist, rentometer, etc. There are plenty of ways to go about getting an idea of what to charge. Good luck!

User Stats

12
Posts
8
Votes
Trevor Western
  • Investor
  • Sudbury, MA
8
Votes |
12
Posts
Trevor Western
  • Investor
  • Sudbury, MA
Replied

I exclusively use RentOMeter.com    It's shows an average and median price for apartments in the immediate vicinity.

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User Stats

885
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359
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Jeremy Pace
  • Contractor
  • Pittsburgh, PA
359
Votes |
885
Posts
Jeremy Pace
  • Contractor
  • Pittsburgh, PA
Replied

I like to look at the fair market rent (FMR) that is listed by the local (or relevant) housing authority. For me, that is:

http://www.achsng.com/docs/FMR2015.pdf

this gives me a basis for my analysis, at a minimum.

User Stats

1,637
Posts
736
Votes
Jonna Weber
  • Investor
  • Boise, ID
736
Votes |
1,637
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Jonna Weber
  • Investor
  • Boise, ID
ModeratorReplied

Zillow and Trulia are great sources.  It does sometimes feel like more of an art than a science.  Definitely connect with reputable properrty manageent companies too.  They can be very helpful in giving you realistic rents.

  • Jonna Weber
  • 208-608-4884
  • Podcast Guest on Show #80
  • User Stats

    5,116
    Posts
    5,180
    Votes
    Kyle J.
    • Rental Property Investor
    • Northern, CA
    5,180
    Votes |
    5,116
    Posts
    Kyle J.
    • Rental Property Investor
    • Northern, CA
    Replied

    There is no one source by itself that will tell you what the rent should be.  You need to check multiple sources (i.e. Craigslist, Zillow, Rentometer, Trulia, Hotpads, local property mgmt company, etc). 

    Rentometer, for instance, does not even factor in how many bathrooms a home has, the condition of the home, size of the home, or even type of home (apt vs SFR). It's mainly just comparing properties with a similar number of bedrooms in the general vicinity. Hardly an accurate way of determining "comps".

    Another place to check for some more ideas on the topic is BP's own Ultimate Guide to Fair Market Rents.

    User Stats

    1,444
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    827
    Votes
    Fred Heller
    • Real Estate Agent/Property Management
    • Houston, TX
    827
    Votes |
    1,444
    Posts
    Fred Heller
    • Real Estate Agent/Property Management
    • Houston, TX
    Replied

    This is where the dreaded realtor comes in handy. He/she can look up rental comps in the area to give you a pretty accurate estimate of the optimal rental price.

    Personally I've found the rent guestimator websites to be pretty inaccurate. I've compared rentals in my neighborhood against those sites, and the sites are consistently $200-$300 lower than I know these properties are getting for rent.

    User Stats

    280
    Posts
    98
    Votes
    Che Chiu Wong
    • Jersey City, NJ
    98
    Votes |
    280
    Posts
    Che Chiu Wong
    • Jersey City, NJ
    Replied
    Originally posted by @Cory Shannon:

    How do I find out an areas average rent, so I dont over charge, or under charge on my rental?

     There are lots of ways.  Like most says there are rentometers.com, Zillow etc.  

    If you don't want to overcharge or under charge your rental, just put a test listing on Craigslist.  Usually most responses happen in first day or two.  If it is overcharging, then you will have very few, if any, phone call. Undercharged? You will have a lot (too many?) phone calls!

    User Stats

    57
    Posts
    26
    Votes
    Will Koederitz
    • Royal Oak, MI
    26
    Votes |
    57
    Posts
    Will Koederitz
    • Royal Oak, MI
    Replied
    Cory Shannon I agree with Fred Heller , I use my realtor to send me comps for rentals. These may be previous or current and you can eventually get an idea of what the rent amount should be. Be careful, just because something is listed for rent at a certain amount doesn't mean it's going to rent for that amount. It's better to have a history showing that a property rented for a certain amount so you can confidently demand that price.

    User Stats

    382
    Posts
    123
    Votes
    Mary lou L.
    • Investor
    • Wichita Falls, TX
    123
    Votes |
    382
    Posts
    Mary lou L.
    • Investor
    • Wichita Falls, TX
    Replied

    If you live close by, drive through the neighborhood and give a call on any "for rent" signs you see in yards.

    This also is a possible lead for driving for dollars!!

    User Stats

    359
    Posts
    143
    Votes
    Austin Youmans
    • Investor
    • Vancouver, WA
    143
    Votes |
    359
    Posts
    Austin Youmans
    • Investor
    • Vancouver, WA
    Replied

    Just pretend like you are a renter wanted to rent your unit. How would you find what rents are in the area you want? For me, I use craigslist and compare bd/bath/ft^2 and anything else you would want in a rental unit.

    User Stats

    2,953
    Posts
    4,477
    Votes
    Alexander Felice
    • Guy with Great Hair
    • Austin, TX
    4,477
    Votes |
    2,953
    Posts
    Alexander Felice
    • Guy with Great Hair
    • Austin, TX
    Replied

    I do the same thing as @Austin Youmans. People in my area are using craigslist to find places to stay, so I use craigslist to determine my market rent. 

    I invest in mostly B-C areas, if you have nicer properties then realtors, property managers, and other rent estimators will give better feedback because that's the way renters will find units. Basically I think it's area dependent. 

    User Stats

    35
    Posts
    14
    Votes
    Theresa Sanford
    • Investor
    • Queen Creek, AZ
    14
    Votes |
    35
    Posts
    Theresa Sanford
    • Investor
    • Queen Creek, AZ
    Replied

    I occasionally look at rentals on Craigslist and keep a spreadsheet for future reference.  I note the price, size, number of bedrooms, location and amenities.   

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    User Stats

    35
    Posts
    6
    Votes
    Charles David
    • Real Estate Investor / Agent
    • Lacey WA, WA
    6
    Votes |
    35
    Posts
    Charles David
    • Real Estate Investor / Agent
    • Lacey WA, WA
    Replied

    You could ask a property manager what they would rent it for if they had the listing. Plus you might ask them to come out and take a look at it to see if there were any improvements you could make to make it more attractive to potential renters.