Skip to content
Starting Out

User Stats

16
Posts
2
Votes
Andrew Powers
2
Votes |
16
Posts

Does Zillow accurately reflect rentals and rental prices?

Andrew Powers
Posted Jul 17 2019, 06:08

I'm just getting into the business of real estate investing and I'm just curious what your thoughts are on this topic. Are the rental prices on Zillow a good gauge of how I should price my rentals? Are the properties listed on Zillow properties that have yet to be successfully rented? Is there more out there to compare than what can be found on Zillow?

User Stats

29
Posts
11
Votes
Jorge Pereira
  • Kensington, MD
11
Votes |
29
Posts
Jorge Pereira
  • Kensington, MD
Replied Jul 18 2019, 15:43

@Andrew Powers definitely not

User Stats

60
Posts
25
Votes
Michael Vu
  • Rental Property Investor
  • Cincinnati, OH
25
Votes |
60
Posts
Michael Vu
  • Rental Property Investor
  • Cincinnati, OH
Replied Jul 18 2019, 16:07

One good way to determine rents is to call Craiglists listings or For Rent sign listings for similar houses and to try to negotiate a rental price pretending like you are trying to rent. Then you can see how low they are willing to go.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

125
Posts
60
Votes
Tara Sullivan
Pro Member
  • Real Estate Agent
  • Mesa, AZ
60
Votes |
125
Posts
Tara Sullivan
Pro Member
  • Real Estate Agent
  • Mesa, AZ
Replied Jul 18 2019, 16:16

@Andrew Powers use Zillow as a guideline but do your own research because it’s hit or miss sometimes their pretty close and others they are FAR off so use your best judgment.

Sullivan Equities, LLC Logo

User Stats

115
Posts
68
Votes
Mike S.
  • Investor
  • Colonial Heights, VA
68
Votes |
115
Posts
Mike S.
  • Investor
  • Colonial Heights, VA
Replied Jul 18 2019, 16:59

I feel the rental estimates are pretty accurate but the home values are no. Compare with rentometer.com

User Stats

35
Posts
17
Votes
Scott Marshall
  • Flipper/Rehabber
  • Bellevue, WA
17
Votes |
35
Posts
Scott Marshall
  • Flipper/Rehabber
  • Bellevue, WA
Replied Jul 19 2019, 08:39

@Andrew Powers I would recommend taking any automated valuation or rent estimate with a grain of salt. However, I use them to track the trend lines and in my first pass analysis (though even then I look at multiples and take an average after excluding outliers). I would never put money on the line betting on the algorithm.

User Stats

20
Posts
4
Votes
Replied Jul 19 2019, 12:04

@Andrew Powers

For more accurate data check the property currently listed for rental in specific zip code you are buying.

Check how long is it in the market?

That sometime give good indication of price point.

I usually see all that and more and put $25 to $50 dollar less on that price to be safe when run my number.

User Stats

6,023
Posts
9,396
Votes
Dennis M.#5 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Erie, pa
9,396
Votes |
6,023
Posts
Dennis M.#5 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Erie, pa
Replied Jul 19 2019, 13:05

In my area the rental prices are pretty close but the home value is usually way off

User Stats

90
Posts
68
Votes
Haseeb M.
  • Real Estate Agent
  • Hoffman Estates, IL
68
Votes |
90
Posts
Haseeb M.
  • Real Estate Agent
  • Hoffman Estates, IL
Replied Jul 22 2019, 12:16

It can be a hit or a miss.

Zillow CEO Spencer Rascoff sold home for much less than Zestimate.

https://www.inman.com/2016/05/18/zillow-ceo-spencer-rascoff-sold-home-for-much-less-than-zestimate/

User Stats

1
Posts
0
Votes
Brian Snow
  • 43235
0
Votes |
1
Posts
Brian Snow
  • 43235
Replied Jul 22 2019, 12:24

I recently saw a post that said the “A” in Zillow is for Accuracy.

User Stats

563
Posts
555
Votes
Isaac S.
555
Votes |
563
Posts
Replied Jul 27 2019, 17:55
Originally posted by @Brian Snow:

I recently saw a post that said the “A” in Zillow is for Accuracy.

 I was about to say "there is no A in Zillow"....and at that moment I realized..... that I got the joke!