A bit of a rookie question here, but how do you find out the average rental rates for properties in a target area? I know that you can analyse deals on BP, but I find that a lot of the time, there isn't a lot of information for comparable properties in my target area (Capital Region, NY).
Appreciate any suggestions.
There are web sites that compile basic data like that. Most states have cost of living tables for every county, maybe even every major city, that probably includes rent for different types of housing. We have it in Wyoming so I'm sure other states do the same. It looks something like this:
You could also check out rentometer.com for an average cost around the address you are looking at.
@Chris Lawlor Completely miss-read this the first time - my bad! I'll second the Rentometer tool.
@Nathan G. , those are super low rents compared to Cheyenne area!
I personally have found rentometer to be pretty inaccurate for my deals. I rely on my property manager as they have a constant pulse on the rental market (its ever changing in my area). Or I look to see what other like rentals are listed for in the area... fb market place, zillow, property manager listings, craiglsist etc.
Originally posted by @Sheri Fluellen :
@Nathan G., those are super low rents compared to Cheyenne area!
Not surprised. Our local population complains about the high rents here but I think they're pretty reasonable considering the location. Prices are definitely higher in larger cities, probably because the job market is stronger.
@Chris Lawlor Online sources are great to get a rough idea but in markets like the capital district rents can change block to block and city to city. Your best bet is to reach out to an agent or property manager that is active in the area to help you with this. They can help you find the areas you are looking to invest that will fill your criteria be it CoC, $/door, or ROI. Feel free to reach out if you have any other questions.
I’ve used Craigslist ads, local Facebook groups that focus on finding renters, and calling property management companies to get a better understanding of current rental rates. However, I’ve found in my area, that many of the craigslist ads are priced under what is feasible in the rental market. So don’t sell yourself short!!
@David Kiszka thanks for the input. It seems PM and Agents have the most uptodate info even in this digital age!
@Chris Lawlor Correct! Also being a a smaller rental market compared to NYC or Boston, there is way less data. Less data = larger ranges in rental prices available to pull from. Agents and property managers from the area you are looking to invest in will always have the most up to date information.