Rentometer for Cashflow screening

Chicago, Illinois
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Rentometer for Cashflow screening

Fernando Lozada
Member since 2023 · 6 posts · 8 votes

Hello everyone! I'm looking for my first rental property, a condo in Chicago. I've been using Rentometer.com to quickly screen potential cash flow for MLS listings my agent sends me. Can you share your experiences with Rentometer's accuracy, or suggest any other tools? Thanks!

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
3y

The MLS is the only data that is actually verified.
CHALLENGE: Less than half of rentals go through the MLS, so there isn't always enough data points to be helpful.

Zillow has everything the MLS has, PLUS PMC's and individual landlord listings.
CHALLENGE: No one actually reports what a lease "sold" for or verifies it. All you know is what it listed for

Rentometer: has same challenge as Zillow.

BEST to use all three to make sure you have enough data points to reference and then try to average out the data points for the best comparables.

Logical Property Management4.9454 Reviews
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  • Blake Alan Quarrie
    Investor · Chicago · Member since 2021 · 16 posts · 12 votes
    3y

    It's fairly accurate, however, I would make sure you're also setting the parameters correctly. For instance, make sure you're setting the sq footage (I typically flex 200 sq feet on either side) and the correct unit type (apt/condo instead of house, which can only be done via laptop).

    For other tools, I would suggest looking at the available rentals in that area and how they measure up to your prospective property. You mentioned a condo in the city, so there should be plenty of nearby condos you can use for comparison, if not even in the same building. 

    I would also HIGHLY suggest you make sure to check with the building's HOA policy on rentals, not all condominium properties allow rentals, so you could waste a lot of money buying something you can only use as a personal residence.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    There is nothing better than real rental comparables on the MLS. Your realtor should be able to provide you that.

    1Reply
  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    I agree with @Eliott Elias. When running analyses I always pull rental comps from the MLS. My brother has been using rentometer for comparison and I've found his rent estimates to be way higher than what I project using MLS comps.

    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    I've definitely found that BP's rentometer is more conservative as compared to other rental forecasts tools I've used (dealcheck.io to be specific). 

    1Reply
  • Wes M.Pro Member
    Rental Property Investor · Southeastern, NC · Member since 2018 · 163 posts · 146 votes
    3y
    Quote from @Fernando Lozada:

    Hello everyone! I'm looking for my first rental property, a condo in Chicago. I've been using Rentometer.com to quickly screen potential cash flow for MLS listings my agent sends me. Can you share your experiences with Rentometer's accuracy, or suggest any other tools? Thanks!


    I've found the Zillow rental estimate calculator to be fairly accurate. It will also produce a report of recent listings. You can find the site here:

    https://www.zillow.com/rental-manager/price-my-rental/

    2Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    3y

    Rentometer is not particularly reliable. From my understanding, whenever someone types in the rent of their unit it puts it in there so people guessing what they might rent it for it takes that down as data. (It could also be vulnerable to trolls.) But moreover, it doesn't differentiate between houses and apartments. For me, it's just to get a rent price ballpark. 

    Comping the property on sites like Zillow or Trulia or using a service like RentRange.com makes much more sense IMO.

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  • Becca F.
    Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    I've found Rentometer to not be very accurate since it doesn't take into the condition of the property. I'm doing my searches as a buyer, not a real estate professional. On my San Francisco Bay Area SFH which was renovated last year, it was low by $1200 to $1500, which is significant amount. On my Indianapolis properties, it ranged from being high for a SFH in nice suburb (in good condition built in 2005 but not updated with granite countertops and LVP flooring). I've seen other owners advertise their homes for that high Rentometer rent and have to lower it. For my SFH in the city of Indy (recently renovated in a developing neighborhood), it was accurate. Some of those transitional areas where you have older homes rented out and updated ones have rents covering a wide range.

    I would do search on Zillow or Redfin for rental comps or better, talk to property management companies - they're the ones advertising and screening for tenants so their numbers would be accurate. 

    Side note: if the HOA fees are high, that could really affect your cash flow. I sold a condo in the Bay Area because of the ever increasing HOA fees (went from $445 to $605 a month in just over 2 years). Good luck!

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Fernando Lozada Rentometer is great but MLS is best!

    0Reply
  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    3y

    Its ok... the best source is a local property manager. Call a few of them- give your address and they will give you the most accurate numbers, don't rely on a random machine. Most properties with PM companies don't even hit zillow- which is where renotmeter get numbers from. So its not the entire picture. however Pm's are human and actually showing the houses, and know the numbers. Call the human :) 

    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    The MLS is the only data that is actually verified.
    CHALLENGE: Less than half of rentals go through the MLS, so there isn't always enough data points to be helpful.

    Zillow has everything the MLS has, PLUS PMC's and individual landlord listings.
    CHALLENGE: No one actually reports what a lease "sold" for or verifies it. All you know is what it listed for

    Rentometer: has same challenge as Zillow.

    BEST to use all three to make sure you have enough data points to reference and then try to average out the data points for the best comparables.

    Logical Property Management4.9454 Reviews
    WebsiteView Page
    2Reply
  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    3y

    @Fernando Lozada

    rentometer, rentcast, current and past rentals listed on Zillow nearby. MLS is not always used for rentals in some markets as much as other platforms.

    [email protected]614-698-1227
    Reafco - Columbus, OH
    WebsiteView Page
    1Reply
  • Priya Sib
    Member since 2023 · 1 post · 0 votes
    3y
    Quote from @Scott Allen:

    @Fernando Lozada

    rentometer, rentcast, current and past rentals listed on Zillow nearby. MLS is not always used for rentals in some markets as much as other platforms.

    Hi @Scott Allen how one can find the past rentals on Zillow? I can only see past sold listings but not the past rentals. 

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    3y

    Hey @Fernando Lozada - I think you'll find it to be pretty accurate...we used the paid version and try to double-check it with the MLS...the most important aspect is the sample size.

    Here is Chicago we've generally found it to be at first glance worth using.

    [email protected]
    Quality Builders4.966 Reviews
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  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    3y

    @Fernando Lozada we have been using Rescover as a tool to underwrite and skip trace.   

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61090 Reviews
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  • Eudith VacioPro Member
    Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
    3y

    Hey @Fernando Lozada - if it's a condo, you can most likely look at other rentals in the building to check prices but other than that I would use everything at your disposal like MLS, Zillow, and rentometer.

    0Reply
  • Rick CasadyPro Member
    Real Estate Broker · Barrington Il · Member since 2015 · 14 posts · 1 vote
    3y
    Quote from @Melissa Nash:

    Its ok... the best source is a local property manager. Call a few of them- give your address and they will give you the most accurate numbers, don't rely on a random machine. Most properties with PM companies don't even hit zillow- which is where renotmeter get numbers from. So its not the entire picture. however Pm's are human and actually showing the houses, and know the numbers. Call the human :) 

     Agreed! @Melissa Nash well put and so right. I the past I have had problems getting good data or enought data from a lot of the sources listed, but a good Property Manager with a large portfolio will be your best source. 

    0Reply
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