How can I know how much a property will actually rent for?

Question

There are lots of good deals in my area and it is a strong renter market.  The variable that I don't know how nail down is how much a property will ACTUALLY rent for per month. Agents and prop mgrs seem to want to guess high.  But I need to have a more realistic opinion of what houses in one neighborhood rent for vs a similar neighborhood across town.  Any suggestions?  Jack in Franklin TN

James Martin · Answer

In the pass I always talked to the neighbors as if I was looking to rent in that area. I had no problem getting their landlords number or I would call the "for rent" signs in the area.

Jon Holdman · Answer

Also, drive the area and look for for rent signs.  Then start making some calls.  This can let you get more details about the condition, size, and amenities for the property.  Its also useful to assess the PMs and landlords in the area.  If they're all surly or hard to get on the phone, then just answering the phone and being pleasant will make your unit more attractive.

Danny Day · Answer

Develop a relationship with a licensed realtor in your area. The MLS will show rental amounts listed / leased for each deal that was done on the MLS. This is great info to have.

Danny

Donovan R. · Answer

Know your area! A quick tool that might help - Rentometer.com  Don't count on it exclusively but it will give you a quick snapshot.

Mark Updegraff · Answer

IT DEPENDS!

Your rent will be determined by:

WHEN you're showing the uint.  Applicant pools vary.

WHERE your unit is.  Seriously, a few blocks makes all the difference.

WHO is showing it.

Master those three and you're golden :D

Joel Owens · Answer

You also need to take into account if your competition is waving the security deposit for qualified applicants,charging a pet fee or not,paying for any water,sewer,trash for the tenant included in the rent,including appliances,or giving a rent credit on move in, and many other factors.

Rent rates can look good until you see how many landlords you are competing with,quality of the product,and incentives given driving down the net rent before debt service and depreciation.

Ibrahim Hughes · Answer

Rented apartments listed by a realtor are on the MLS. I like to take those numbers and match them against the rents asked for on Craigs list as well as the local newspaper. Together these should give you a good idea.

Mitch Kronowit · Answer

This has been covered in several BP threads. I like to use a combination of Realtor/agent/property manager opinions, rentometer.com, finestexpert.com, rentjungle.com, and also look at "asking" rents for similar properties on craigslist.com and zillow.com.

Put all those numbers into a blender and you should arrive at a "smoothie" that's pretty darn close to what you can expect for rent.

How can I know how much a property will actually rent for?

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