What you use to determine market rent?

Question

Josh Buchanan · Answer

I use Rentometer and think it is worth the money. The larger the market the more data available. When you do a zip code analysis it gives the actual properties, rent amount, and date they were rented. I usually look up the property address in Zillow or Realtor.com to see property info and pics for comparison to my property.

Dee Shaun · Answer

@Jennifer Rysdam

Local PMs may be your best bet

Mike Franco · Answer

just like zillow zestimate is BS, I don't think any AI can accurately tell you what your rent should be.

AI still isn't smart enough to look at your photos and location and give you good advice.

When I listed my rental last month, the zillow rentzestimate was changing daily. It would go up to 2700, then down to 2500, then back up to 2650, up and down.

Use good old fashion manual comps like you do when selling a house.

Check your MLS for recent rentals, and look at the pictures. Then use your gut to ballpark your rent amount

Jennifer Rysdam · Answer

My 8-plex is in a tiny town. I have a hard time estimating what my market rent should be. I often look at surrounding towns, while realizing that they are larger and have more amenities. Another thing to also consider is any utilities that are or are not included. There are some rentals in my neighboring town that are $200 more per month, however they include all utilities and I don't. My tenants have to pay their own electric, which also is their heat and AC. That bill can vary a lot depending on the time of year.I tried Rentometer and we weren't even on their radar, lol!

Mitchell Rusten · Answer

@Jingru Sui on the podcast I heard about an interesting strategy where a guy would go on rentometer for his initial estimates, then look up some rental comps in the area and post a pseudo-listing on Craigslist’s or similar marketplace and see how much activity he gets. It’ll give a pretty good idea of what the market demand is like for the type of property you want to list.

Anthony Wick · Answer

@Jingru Sui . I evaluate what others are asking on Zillow, Facebook marketplace, Craigslist (less and less), and call the numbers on "For Rent" signs. That's about all I need. Look at their pictures that are posted and compare your rental to theirs. And be honest. Some place really will be better than yours.

John Underwood · Answer

Zillow estimate and rentometer are both pretty good.

I also like to look at rental listings on FB marketplace, Zillow and Craigslist to see what other people are listing similar properties for.

Domenick T. · Answer

I use Rent Range as others have mentioned. I have a discount code if you’re interested. Just message me.

Rob B. · Answer

Hi Jingru, a lot of great resources already noted. I'd mention that Rent Range is a great way to generate reports with hyperlocal data and the cost of the report is about $19.99. I know at one point the team had a partnership with them but outside of that, I've had a lot of independent friends just starting in REI and they've used Rent Range as a resource. I hope that information helps! @Jingru Sui

What you use to determine market rent?

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