Best way (and factors to consider) to set reasonable rent????

Question

When looking at rental comps what features/amenities have value when setting rent?

garage vs carport?  pool access? tennis courts?  schools? interior/exterior upgrades (granite, deck, sunroom)?  neighborhood location to community amenities (shops, major highways, schools, etc.)?

All of that matters, in addition to comps, right?

Any thoughts from experienced landlords?

Al Williamson · Answer

@Megan Aldridge this is where you earn your chops.

I suggest

1 - Starting with Craigslist and rentometer.com to get a good background

2 - Driving around and eyeballing the properties on the higher end of what you want

3 - Adjusting your mindset to talk to potential tenants about the value of what you're offering. Learning out to sell is a big part of getting higher rents.

Best to you. Good question.

John Thedford · Answer

Amenities are fine to consider but the major factors are going to be bedrooms, baths, square footage, location, and quality of the unit. Another poster suggested rentometer. I recently did some research and found their "values" for Cape Coral to be off considerably due to rapidly rising rents. I suggest that, along with websites such as that, you call local PM companies to see offerings of similar properties to yours. Schools, pools, yes they can and do often command a better price but IMO the main driving factor is bedrooms, baths, location, and overall quality of the unit. Just from one year ago I am well under market and will be increasing rents to market this year. Also, if you have access to MLS or an agent that can pull some for you, rentals (closed) are a great way to evaluate market values of yours.

Megan Aldridge · Answer

Thank you all!

Seth Nadreau · Answer

Any realtor who has experience with buy and hold properties could likely help pair out rents for you. Also, as an appraiser, there are rental surveys that can be done to produce reasonable rental rates using adjusted comparables.The concept that "all amenities have value" is simply untrue. Primary factors of value are typically bedroom and bathroom counts, location and condition. Lesser factors can be parking, living area, age, etc. Some factors that typically don't see added value are items such as fences. I find a home with a fence typically has less vacancy, but doesn't typically bring in more monthly income. Of course, all factors are dependent on the market. Pricing rent is very similar to pricing a resale property. The market will determine the value... although be sure you understand the difference between value and marketability.

Mike Wood · Answer

@Megan Aldridge Renters are different from buyers.  Generally some of the things you listed will attract more applicants, but might not command that much more money (i.e. granite, decks, etc.)  Most renters look for location, bedrooms and bathrooms.  Most don't know enough to ask about sq. footage (but they can tell when they walk thru the property).

Big items like garages, included washer/dryer, central air/heat will command more money.  The other things (like hardwood floors, granite counters, stainless steel appliances) do add value and could increase the rent, but not like the big items.  Generally, if the other same sized units in the area are getting $X/month, the little things are not going to allow you to get too much more than that.

Bryan Bagge · Answer

I have used my Realtor to help me with leasing new tenants. I trust them with financial screenings and background checks. It is in their best interest to supply good tenants so we will continue to use them.

I understand it costs a percentage, however, in my experience with both good and bad tenants it has been well worth the price.

Megan Aldridge · Answer

Thanks so much!  I'll get to work! ;)

Christopher Brainard · Answer

@Megan Aldridge

Hi Megan and welcome to BP.

You are correct - All amenities have value when setting rent, the question is how much. The value of the amenity is set by your local market. The easiest way to start to get a feeling for the value is to look at multiple comps in close proximity to each other and analyze the differences in the properties and the different in rent.

For example, if you see a property that rents for $50 more per month than an identical property, except one has a garage and one does not, you can extrapolate that a garage is 'worth' $50. This is, of course, an over-simplified example and you need to look at multiple properties and average this out, but you get the general idea.

-Christopher

Best way (and factors to consider) to set reasonable rent????

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