How do you figure out fair market rents?

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Rental Property Investor · West Caldwell, NJ · Member since 2014 · 66 posts · 18 votes
5y

Try Rentometer, Zillow, hotpads, apartments.com. Network with local realtors/property managers and ask them…

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  • Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes
    5y

    I personally just use zillow to see what other comparable rentals are listed for. I know there are far more sophisticated, (and likely much better), ways to price rent. I will stay tuned to see what others do. 

  • Rental Property Investor · West Caldwell, NJ · Member since 2014 · 66 posts · 18 votes
    5y

    Try Rentometer, Zillow, hotpads, apartments.com. Network with local realtors/property managers and ask them…

  • Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    4y

    Yes, agreed, reach out to resources! 

  • Investor · St. Paul, MN · Member since 2020 · 9 posts · 2 votes
    4y

    You maybe already figured out an approach that works for you... but you could check out this Rookie Reply podcast episode that addresses this question.  https://www.biggerpockets.com/...

  • New to Real Estate · CA · Member since 2020 · 15 posts · 3 votes
    4y

    @Matthew Charde

    Reach out to agents maybe 🤔

  • Investor · Lafayette, LA · Member since 2015 · 13 posts · 12 votes
    4y

    I'm very surprised at the responses here.  In my view, there is only one real way to figure out your market rent.  Sit down and call your competition.  

    Find a for rent sign in your neighborhood and call the number.  You can do this without lying-- just tell them you're "interested in the apartment/house" and could they tell you a little about it?  They, like all sales people, will spill their guts. Be sure to note the number of beds, baths, and square footage along with the rent.

    You should be doing this once every year or two to gauge the market and be sure you're not being left in the dust.  Websites would be my last resort.

  • Rental Property Investor · Plano, TX · Member since 2014 · 54 posts · 19 votes
    4y

    I have a friend who is a Realtor, and I have asked her to run comps for me a couple of times, to see if my rents need adjustment. She is happy to do it, and doesn't charge me, because she is the Realtor I work with when I need to buy a new property, or sell a property. If you don't already have a business relationship with a Realtor, you probably have a friend or acquaintance who is a Realtor. You could ask them to do it, and ask what it might cost for them to do that for you. Probably not too much, or they might even do it for free. Realtors can search the MLS and more results than someone with out a license can. While anyone can look and see what people are asking for rents in their neighborhood, a Realtor or broker can see the actual sales prices—meaning what a property was successfully rented for. They can also help you search for rents on properties that are similar to yours. You can do that yourself to some extent (check zip code, age of home, look at finishes, etc.), but for example, my Realtor will say, "Here's what I found on properties that were within .5 miles of yours, similar age and sq. footage, and rented out in the last 30 days..."

  • Rental Property Investor · Melbourne, FL · Member since 2022 · 22 posts · 29 votes
    4y

    Tools like Zillow are getting pretty good at estimating market rents and rental listings are broadly available to see what others are asking in the area, but actual closed lease rates are the best indicator and agents with access to the MLS is the best tool I'm aware of for that. +1 Laurie Williamson.

  • Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    4y

    Zillow. Actual listings for other apartments in the area. Not estimates.

  • Rental Property Investor · North Jersey Shore · Member since 2020 · 102 posts · 49 votes
    4y

    You msy consider calling your locslhousinh authority, the ones who handle the Section 8 program

    Even though you may not want to use the program, it could open your eyes.

    I  have done this and been suprised at how much they pay....or how little.

    PS. I do not give them my address, just zip code.

  • Chicago, IL · Member since 2019 · 15 posts · 13 votes
    4y

    Rentometer, then Zillow to compare interiors and square footage

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