I am a new investor in Arizona looking specifically at Chandler currently. I have been doing a lot of rental analyzation, and I seem to see a large fluctuation in rents for the same type of property i.e. 3 Bed 2 Bath. However, when I was speaking with a realtor recently, he told me that rents weren't that dependent on square footage, and most of the same type of property goes for the same rent, regardless of square footage. When calculating potential rent, should I factor number of bedrooms and bathrooms more than square footage?
Rents are market driven first and then based on "like properties." The square footage isn't as important as (no surprise here) the location, tenant quality, bed/bath/floorplan/finishes, and amenities. Take a look at what's for rent in your specific market and then compare how your property sizes up to the ones listed. You'll be surprised by the response when you get it right. Glad you posted such an important issue for investors.
@Matt Dickens . It depends on the market. Choose one, then set a baseline for what a good deal/price is and roll with it
@Matt Dickens Hello Matt! Most everything matters Matt. When I pull comps I use the age, square foot range, area, amenities, location, bedrooms, etc.
You can't really compare an 1100 square foot 3 bedroom with a 1900 square foot 3 bedroom etc. It's important to get as close as possible to your subject whenever possible. Bedrooms matter somewhat and are one factor that comes into play.
A 3 car garage property is going to pull higher rent than a 2 car garage and the 2 car higher than the carport. In Chandler, we could find all the different ones as 3 bedrooms and they are not the same.
Sometimes the best ones to buy are the 2 bedrooms that can be made into a 3 bedroom as many will overlook them.
Good luck in your search and always happy to be an asset for you.
@Matt Dickens You will want to use local rentals as comps currently available in the area. Use zillow and Craigslist and be aware of the location of the comps being located across the freeway or in a HOA that might provide lake, golf, or community pool.
Bedroom, bath count, amenities, and location will drive the rental amount based off local comps.
It is the same as buying a house: location, condition, size, amenities. So number of bedrooms, bathrooms and size are important, but so is the condition of the house and location. Look for similar rentals in the area.
Hey Everyone! I really appreciate the insightful responses!
@Doug McVinua If I am not a realtor, is there a good way to see alot of these individual statistics? Currently, the main source I am using is Rentometer and then trying to find old Zillow listings or realtor.com listings for the property to judge quality and additional features besides bed/bath count. Are there other tools I can use as a non realtor to figure out condition of the property esp. on the inside?
@Garrick Oconnell I think your piece on paying attention to HOAs is a really good point. I know I usually think about neighborhood, but the location even in the neighborhood is an important one.
@Patricia Steiner and anyone else who may know, are there any non-conventional tools you have used that are effective tools to help get a look at amenities, quality of the interior of a house, etc. w/o using the MLS?
@Matt Dickens Nothing will ever be as viable as the MLS, do you have a realtor who you can work with on it?
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