Reno rental rates for our first investment property

Reno rental rates for our first investment property

Member since 2021 · 21 posts · 7 votes

Done lots of research the last few months and feel like I have a grasp on this, but thought it was worth throwing it out to the community here as well. 

I am in escrow for a property in old NW Reno. This will be our first rental investment so we are nervous but excited. For reference its a 3/2, fully updated, all new floors, int/ext paint, newly remodeled kitchen/bathroom and appliances. It is definitely a nice and newly updated home, but not huge at just under 1100sf.

As everyone here knows, Reno prices have jumped recently. But (assuming we close next week) we are excited we broke into the market around $375k.
The question to the community here is what is your consensus on current rental rates? As stated we are Old NW, off 7th street near Grace Warner elementary, MaeAnne/McCarran shopping, UNR, etc, so think we have a good chance of getting a young family or some college renters as well.

For 3 bedroom SFH, It seems like the cheapest room rates are in the $600 range, $700 a room is what I see most, and the nicer luxury properties with large garages and bigger yards are in the $800 a room range. I know there are outliers of things slightly cheaper and slightly more expensive, but does anyone agree with this ballpark? Anyone trying to fill their rentals currently or recently?

Our mortgage should come in around $1350. We are thinking of asking $2100, but will still be able to contribute to the maintenance/vacancy account comfortably if we come down to the $1800 range. Not the crazy cash-flow as in other parts of the country, but we are still excited to get started and be in the green.

Thanks for any input!

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  • Investor · Reno, NV · Member since 2015 · 69 posts · 48 votes
    5y

    Sounds like you bought well to be under $400k in Reno. Hard to tell you the rent just from the description. Looks like you are in the 89503 zip. I’d look at Zillow and you can see what similar houses are asking and what kind of responses they get. Are you going to allow pets. It definitely expands the list of available tenants. I often allow them but do not in my student rentals. Also, I make sure if I’m marketing as a student rental that I have parents co sign. Are you planning to manage yourself or use a PM?  Bottom line, the rents can be a little fluid, so you just need to look at supply and demand when you’re ready to rent. Fall and winter can be slower. I suspect you’ll end up somewhere between $1800 and $2100. 

  • Member since 2021 · 21 posts · 7 votes
    5y
    Originally posted by @David Jay:

    Sounds like you bought well to be under $400k in Reno. Hard to tell you the rent just from the description. Looks like you are in the 89503 zip. I’d look at Zillow and you can see what similar houses are asking and what kind of responses they get. Are you going to allow pets. It definitely expands the list of available tenants. I often allow them but do not in my student rentals. Also, I make sure if I’m marketing as a student rental that I have parents co sign. Are you planning to manage yourself or use a PM?  Bottom line, the rents can be a little fluid, so you just need to look at supply and demand when you’re ready to rent. Fall and winter can be slower. I suspect you’ll end up somewhere between $1800 and $2100. 

    Thanks for the input. Agree with the thoughts on student tenants. We will be self managing for now. One reason we wanted Reno NW is its a quick drive down the hill for us. Was planning to use Zillow to list the rental and use for background/credit too. Heard from another investor friend down there that people use zillow to search for rentals. Do you use it as well, or craigslist/facebook marketplace/something else? 

    Will update here once we get some tenants in.

  • Investor · Reno, NV · Member since 2015 · 69 posts · 48 votes
    5y

    Yes. Zillow seems to be the go to place right now. I’ve not used their tenant screening. Generally, I do the initial screening myself and verify with transunion smart move. I believe with Zillow the perspective tenants can fill out one app and apply to multiple properties. I still have a few I self manage but as they turn over I’ve let my PM manage. They use Zillow too, but also prefer their own application over the Zillow application. Good luck. 

  • Member since 2021 · 21 posts · 7 votes
    5y

    To update, we just signed a lease to start Nov. 1 2021 at $2,100/mo. We are happy because this was the higher end of what we were hoping to get for rent. With that being said it looks as though rent prices are ever so slightly continuing to rise in Reno... We used Zillow, had it up for about a week. We had around 23 inquiries and 7 applications. Lots of flaky generic "is this available i'd like to look at it messages", but had a couple people chomping at the bit so I think the demand is still pretty strong in the area. 

  • Reno NV (invest in Sparks, NV) · Member since 2021 · 33 posts · 23 votes
    5y

    I think 2100$ is reasonable in that part of town. I'm about to list my first rental in old Sparks and planning on starting at 2k (3/1 1100 sq ft, detached garage, big yard). 

  • Member since 2021 · 21 posts · 7 votes
    5y
    Originally posted by @Charlie Lockwood:

    I think 2100$ is reasonable in that part of town. I'm about to list my first rental in old Sparks and planning on starting at 2k (3/1 1100 sq ft, detached garage, big yard). 

    Awesome! Yea that sounds reasonable. We had good luck with Zillow rental manager. Keep us updated on what happens!

  • Member since 2021 · 21 posts · 7 votes
    4y

    @Charlie Lockwood How is your listing going in Sparks? Were you able to get $2k? Trying to keep my finger on the pulse with what rents are doing in different areas. 414 5th St in Sparks has been on the MLS for some time now, it seems like one would be able to get it to cashflow if you could get the $2k for the front house and something in the $1k+ range for the rear unit?

  • Reno NV (invest in Sparks, NV) · Member since 2021 · 33 posts · 23 votes
    4y

    @Jameson Schwab   I'm holding off a little longer until I list my rental. Only because it won't be available until Feb 1st. The listing is all ready to go, just need to hit publish. Going to start at 2k. I saw a couple listings on Zillow with similar 3/1 floorplan w/garage and yard for 2k. 

    I noticed the listing you're talking about. It has a modular home on the property as the back house. It's been listed for a while, maybe you can get it for closer to 400k.

    I'll keep you posted on my listing. Aiming for a few more weeks. 

  • Reno NV (invest in Sparks, NV) · Member since 2021 · 33 posts · 23 votes
    4y

    @Jameson Schwab Here's an update on my rental. I posted a message on my personal IG a couple weeks ago that I will be renting my 3/1 house in 89431 in Feb. I had two couples come look at the house. Both really liked it. ((Both are teachers (I am as well). 

    One of the couples filled out an application that night. They appear to be great tenants (cred score 800, no evictions, good references, solid employment, income at least 3x monthly rent). 

    Since then, they've put down a deposit to hold (got that from B Turner's book on managing rentals).  We've agreed on $1850 per month and 1850$ security deposit....plan on signing a lease soon... for Feb 1 move in. 

    A couple thoughts - I chose not to post the listing on Zillow or any other online platforms. I think I probably could have gotten closer to 2k if I had marketed it more...BUT, I feel confident in my choice...I guess time will tell and i'll keep you posted on here. 

    Gotta give a shout out to Brandon Turner's book on managing rental properties. For the most part, I've followed the steps in the book to a T (I will be self managing). So far, so good. 

  • Member since 2021 · 21 posts · 7 votes
    4y

    @Charlie Lockwood that is awesome. Yea I think you could have got a tad more $$$ in rent, BUT I think you scored getting teachers with killer applicant quals in there. That has both monetary and non-monetary value that will pay off. Congrats

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