Rental rate historical data?

6 Replies

Is there a source (website) where I can research rental rate data? I rarely raise rents in my units and usually wait until a vacancy occurs, research rental rates via craigslist, etc, and then rent for whatever the market will bring.

I recently bought a duplex where the previous owner raised rents almost annually by 2.5-3 percent each time. Obviousely it depends on the market but what does everyone else do? Scheduled increases? Wait for vacancies?

I'm in the Phoenix market and have both MF and SF.

Thanks everyone,

Casey

We rarely raise rents. But when we do, we do so because our expenses have significantly increased, not just because others in our market are renting at higher rates and we might be able to generate more income. We value keeping good tenants in place. Our longest term tenant is at 26 years now and the next longest term tenant at 23 years. Annual rent raises will encourage good tenants to start looking elsewhere. 

Turnovers cost money and time. The increase in rent will rarely cover the cost of losing a good tenant and doing a turnover. When we do a turnover, we are apt to do upgrades at that time and raise the rent to reflect the better product we are now offering. Our rate will then be closer to market rate but still a bit below, to attract an ample number of applicants from which to choose.

@Marcia Maynard

 While I agree that the turnovers are costly and having long term tenants is good I see the negative of this in a market especially where rent control is in place.

An example we bought a 4 plex last year and we have one tenant who have been there for 20+ years and another who has been 5+ years. The previous owner did not increase rates until he planned to sell them.  Now these tenants are so under the market (one tenant is about 800 dollars below and another is 600 dollars below market about 30%). with rent control in place we cant raise more than x percent per so it will take us 3 to 4 years to get to with in 5 to 10% of market.  I am okay with the rents being lower by 5% but anything more

@Casey Miles

 Based on the little experience I have with the being a landlord and the issue I am facing above I would say you should monitor the rents yearly and as long as as the rents are 5% to 10% off market we can not increase the rent. If the they are below 10% or so I think you should do small increase.

@Casey Miles , check out rentometer.com.  There are a couple of others, but I can't recall them offhand.  Keep in mind, the numbers are not necessarily spot on, but at least you'll get a ballpark.

One thing I like to do is call the numbers on For Rent signs in the same neighborhood and ask what the rent is.  It's quick and easy.

Thanks for the replies. I do appreciate good tenants and have relatively good luck with my rentals. I am in the process of buying an 8 plex and will need to up rents once I close. They're about 20% under market. I just wanted to make sure there wasn't some type of data source everyone uses.

Originally posted by @Randy E. :

@Casey Miles,

One thing I like to do is call the numbers on For Rent signs in the same neighborhood and ask what the rent is.  It's quick and easy.

 I do the same thing. Works well.

Hi Casey,

I use a combination of Rentometer.com and RentRange.com

RentOMeter is free and RentRange is inexpensive but more info.

I also take into account, what's available on MLS

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