How to estimate possible rent when nothing on Craigslist?

Question

Trying to analyze a possible new property but there is nothing for rent around it that is being advertised on craigslist which is my normal go-to for rental info. I drove the area looking for "for rent" signs to call, but found none. The only thing I have to work off of is a few listed on rentometer.com, but its hard for me to trust that site alone. Anyone have any suggestions to figure out what the places around me are going for? Thanks!

Austin Youmans · Answer

Ask property management companies what they would rent it for.

Also find a similar unit and ask the landlord or tenant what they are renting it for.

Matt Holmer · Answer

Have you checked out Rent Range?  It is a paid service but seems to provide some pretty good info.  Mark Ferguson from Invest Four More had a good article about determining rental value here:  RentRange; An Easy Way to Determine Market Rents

I have no affiliation with either site.

Cassie Bruce · Answer

In the Atlanta market,

Craigslist is a last resort resource (if it is even considered).  There are more rental advertising scams than valid rental ads.

If you do not have access to FMLS, consider viewing Rentals.com.  Rentals.com is popular website used by Property Managemnent companies to advertise thier rental inventory.

Gauging market rents by researching active listings can be misleading , at least in Atlanta market.  We have a high demand for rentals and low supply in most of the Atlanta perimeter. From a surface view it would appear there are "no rentals available in the area" (therefore, little or no economic opportunity for rentals) Investment homes in these areas are leased quickly, with multiple applications at elevated rental rates. (average $50-$200 rent increase per year) and our tenancy averages 2-4 years . A lower number of active rentals or lower vacancy rates  may also correspond with increased levels of neighborhood stability and income.

Atlanta has pocket areas that show a  higher density of active rental homes (homes on market). These areas may even show a "strong history" of rental "re-markets". (the number of times a home(s) are relisted as an available rental)   This is not always an indicator of economic opportunity for investment housing and/or accurate information to formulate market rents.   It may indicate a high eviction rate, lower market rent and higher vacancy rates due to low school scores, crime rate, etc...

I establish market rent ( using  investment home as subject property),

1. Research the subdivisions rental activity over 2-4 year span.       2. Research rental activity within the school district 2-4 years.

Consider  averages for  length of time on market  , average rental rates increase/decrease,       market rental range within school district. Compare single family market rent vs. condo/duplex market rents.

Good luck , each market seems to establish it's own formula.

Cassie Bruce

Platinum Property Management

www.platinumrentalproperty.com

Account Closed · Answer

@Justin C. I like using padmapper.com. It lets you look at current rentals that are available and had their amenities as well so you can tell how they compare to what you are offering.

Good luck!

Justin C. · Answer

@Cassie Bruce Thank you for the detailed response. Realtor.com had a few more options for me to look at, but like you said, I'm going to keep an eye on it for the next few months and hopefully that will give me a better gauge. Property I was looking is under contract already but it has introduced me to a new area I wasn't aware of so I probably could use some research time anyways!

@John Cohen Thank you for the suggestions, this neighborhood I would feel relatively comfortable knocking on doors so I'll probably give that a try. I like the direct approach, it leaves the guesswork out of it and will get me some quick answers.

Michael Seeker I hear you and agree. Like I said above, the prop I was looking at was gobbled up but it will give me a chance to do some more research on what I think is a good area.

Thank you everyone for your thoughts it's been of great help!

Account Closed · Answer

I have also found rentometer.com is pretty accurate in my area although I do not check it often since I know the rent rolls in the areas we buy and sell in.

Glenn McCrorey · Answer

@Justin C.  Since it seems so little is available, I would get a ball park rent range and try to rent it on the high end.

John Cohen · Answer

@Justin C. I like to be a little more proactive and take the ball in my hands to make it happen. Also you can hold yourself accountable and can't point fingers at anyone.

John Cohen · Answer

@Justin C. I like padmaper.com, hotpads.com is also good. The best bet might be contact local management companies, they should know the market well. If you are feeling real good, you can knock on doors (depending on neighborhood) this could give you the best comps.

Cassie Bruce · Answer

@Anna Watkins   - If you are not familiar with the area you may want to utilize several sites.  I suggested www.Rentals.com because most of the inventory listed is managed by property managers who are familiar with your market.  It is an expensive advertising medium, which seems to eliminate fraudulent ads.

Yes,  I do have access to FMLS/Realtor site but it is not 100% accurate either. Many property managers do not co op w/ local Realtors and/or don't list their rentals in the Realtor site.  (We utilize both, in house and Realtor co op).   There is a "public version" of the private FMLS website.    Public site is : www.realtor.com  feeds from FMLS.

Hope that helps.

How to estimate possible rent when nothing on Craigslist?

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