How much to charge for rent?

7 Replies

Would love an app or a tool that I can reference quickly to determine what different properties would rent for. I am fully aware of the 1% target but thats why I need to know what the current rental amount if for each properties neighborhood.  I can see an estimated rent in Homesnap and I do not know if its accurate.  I suppose I can just door knock and ask the neighbors, but I would prefer not bothering them.  Any help would be greatly appreciated!  Thanks all!

Rentometer will give you this information.  You punch in the address, beds, and baths, and it shows you what similar nearby properties have been advertised for recently.

It will give you a few lookups for free, and then it wants you to pay.  I don't have any experience with the paid tier.

Zillow will give you a "rent Zestimate", but I'm not sure exactly what that's based on.

I get my rents from MLS. Get your agents to pull them any time they show you a home.
The 1% rule is way off in most cases. Never rely on that. I never use it period. A $400,000 house does not rent for twice what a $200,000 house does. It is all based off of comps.

@Mike Proctor

You should use multiple sources to establish the market rent. I use rentometer, Zillow, Trulia, Hot Pads,, etc. The MLS in my area is not very reliable as most rentals don't use the MLS, but it is another source. Analyze it the same as if you were to flip a property; comps in the same area, same number of bedrooms, baths, square feet, similar style building, schools, etc.

In the areas I buy I frequently check Zillow to see how rents are trending and to try to get a feel for how long houses at different price points are staying on the market.  Be aware though that when you are looking at a point in time that these houses haven't rented yet and may be overpriced.  Once you have bought the property you can also go on Zillow rental manager and they have a price your rental tool that will give you an estimated range and also show you the comps they used.  

You can use Zillow, Trulia and Rentometer. You may also search for the same type of property as yours in the same area or neighborhood then you can base it on that. 

Use zillow and go to the rent segment. See what properties within a .25 mile radius, same beds, same baths, and similar amenities are renting for. You can do the same thing with the MLS, or you can use rentometer, which in my experience is actually pretty accurate. Lastly, you could hire a property manager to do this work for you- after all, this is their job.