How to set rental price? (Duplex)

Question

Listed for $338k, mortgage would be around $1600/month. 2 beds 1 bath per unit. What would be a fair price to charge for each unit? Each unit also has their own garage. Thanks in advance! (Aurora, Co)

Bjorn Ahlblad · Answer

@Cj Villanueva you can enter the address into rentometer.com it is quite accurate. Zillow works too but not as dependable. Welcome to BP!

Luke Marsh · Answer

Hi CJ. As Bjorn mentioned Rentometer and Zillow are pretty solid for rent estimation. A couple other options are My Rent Rates, RentRange and RentFax. There is some content out there that lists and compares different rent estimation tools as well: https://accidentalrental.com/5-best-rent-estimate-tools/

Eric Johnson · Answer

Use rental comps. It's not too difficult to find out what active listing there are on the market and if they've been on market for 30+ days there probably over priced rental listings. So, take off $50 or $100. If your listing is priced at market, you should be able to screen and place a tenant in 30 days.

Craig Curelop · Answer

@Cj Villanueva - Rentometer is great! Sounds like you got yourself a pretty good deal there so long as it's in a decent neighborhood in Aurora. A duplex for $338k that doesn't need much work? Sounds like a win!

Congrats on the deal!

Blake Dailey · Answer

All of the above online sources are great tools. You can also call a couple of local property managers and get their opinion on what the units will rent for. They may have more current data if they are actively leasing and turning units, placing new renters in at the current rates.

Dan Travieso · Answer

What you can get for rent has nothing to do with what you pad for the property. All that matters is the condition, perks, and comps.

Anthony Wick · Answer

@Cj Villanueva

Notice that nobody said anything in regards to how much you paid for the property, or how much your mortgage is? Those things do not matter, except for presale analyzation.

It’s all about the rental comps, and how your property compares. Around here, besides Zillow, Facebook marketplace is a great way to find comps and determine your rent asking price.

Matt M. · Answer

Take great photos or hire it out to get a walkthrough dot com. They do 3d matter port and a website. Make sure to tell them it's a rental.

Then post it up high and see how many bites you get. If none, then drop the price until you do.

James Carlson · Answer

@Cj Villanueva

As others have said, give Rentometer a try. They are usually pretty good at rough estimates of what you can get. Do be aware of the "search radius" the automatic search uses. It will say 1 mile or 2 miles or whatever. That can make a big difference in Aurora (or anywhere in Denver, for that matter) as even a 1 mile difference in location can be the difference between a C neighborhood and an A neighborhood.

Good luck!

How to set rental price? (Duplex)

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