Hello BP Community! I'm wondering if others use a paid subscription to a local rent guide, like rentometer to get to know their market? Or I guess a better question is, how do you go about finding out what the going rents are in a given area?
I'm in Portland OR and rents can vary quite a bit depending on the neighborhood, which is probably true everywhere.
Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
5y
Hi @Sharon Beatty, I have the pro version of rentometer because I think you run out of free views after awhile I think they are good, but a little overpriced for the properties I'm comping. I would also check out Facebook Marketplace and see the comps in the area that way. You will get a better idea of the other properties as well. That is always my second stop along with craigslist and zillow.
Rental Property Investor · Coravllis, OR · Member since 2014 · 21 posts · 23 votes
5y
Hi Sharon - I'm in the Corvallis/Albany area. I like using tools like rentometer (the free version) to get a feel for rents. It's quick, easy, and usually gets me in the ballpark. I've looked at Zillow's rent estimate, but it never seems to align with other sources.
I'll also spend time on Craigslist. I'll filter to a similar type of property and then look at the rent and the pictures. I'll try to determine if it's better or worse than my rental in terms of condition and features. It's more art than science, but it's the same process your prospective tenants are doing. You can do the same thing on facebook's marketplace and other rental sites, like apartments.com. In my area, CL usually has enough inventory that I get a good sense of the going rate. (semi-related pro tip: pictures are important. It's the primary way they'll get their first impression. If you spend 30 minutes on Youtube, you can get some simple tips to take better photos, which could increase your funnel and/or rent. Remember, they're initially comparing your rent and photos vs another property's rent and photos.)
When talking with lenders, I'll sometimes use the HUD Fair Market Rents as a reference point (if the property isn't rent out) in my underwriting. They also publish, in great detail, how they determined their rates which I've found helpful to give myself credibility while talking to lenders.
Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
5y
Hi @Sharon Beatty, I have the pro version of rentometer because I think you run out of free views after awhile I think they are good, but a little overpriced for the properties I'm comping. I would also check out Facebook Marketplace and see the comps in the area that way. You will get a better idea of the other properties as well. That is always my second stop along with craigslist and zillow.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y
@Sharon Beatty Your best bet is to check a few different sources (e.g. Rentometer, Zillow, Craigslist, Facebook Marketplace, local property management companies, etc).
The following blog article has quite a few resources that might be helpful to you:
BiggerPockets pro membership also comes with a rent-estimator as part of the tools section, deal analyzer.
I tend to look at Rentometer (Pro), BiggerPockets (Pro) and Zillow rents (free, but least accurate) to get a vibe of an area. Craigslist, if an option, will get you boots on ground information.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
5y
@Sharon Beatty rentometer is helpful if there are enough close-by comps, however if an area is very block by block or doesn’t have a lot of other rentals, it may not be very accurate so I’d recommend looking at the comps themselves to make sure they’re actually good comps. Cross-referencing listings on Facebook Marketplace, CL, Hotpads, Zillow, Apartments.com is wise too. IMO nothing beats talking to a local PM with a lot of doors in the immediate area, or other local investors/agents that know the market.
@Sharon Beatty rentometer is helpful if there are enough close-by comps, however if an area is very block by block or doesn’t have a lot of other rentals, it may not be very accurate so I’d recommend looking at the comps themselves to make sure they’re actually good comps. Cross-referencing listings on Facebook Marketplace, CL, Hotpads, Zillow, Apartments.com is wise too. IMO nothing beats talking to a local PM with a lot of doors in the immediate area, or other local investors/agents that know the market.