How are you determining rental pricing?

Question

I'm listing a couple of units for a family member who has struggled to rent them out for the past few months. I'd typically just look at comps in the area and list accordingly, but I'm curious to see if others are using specific tools and/or metrics to determine rental pricing. Any input is greatly appreciated :)

Janice Carter · Answer

I would start with comparable rentals but I wouldn’t rely on that alone. I also review Rentometer, Zillow active and recently leased listings, average days on market and any concessions competing landlords are offering. If it is been sitting for months, the market has already given feedback. It is either price, condition or terms. Marketing matters just as much. Use professional photos and ensure the units are truly show ready. In this market, you have to price to move, not price to test.

Bill B. · Answer

How do your comps compare to the prices the relatives couldn’t get them rented at? If the comps (and your new price) aren’t significantly cheaper (5-10% with a couple hundred dollar minimum.). The problem could be poor quality pictures (many/most do it yourself landlords LOVE to sue iPhone pictures.). Or the place and quality of advertising. (Are they only doing free advertising?)

Hopefully your new comped price is waaay lower. If it’s not, look at the pictures and advertising, maybe a local PM. But whatever you do, do not lower the standards or skimp on screening. This is always true, but it’s “especially always true” in CA, and even more so on LA. You don’t want 6 months of non-paying tenant, followed by $15k in damages leaving you dreaming about the money lost while vacant.

Ps. When they reject your suggestion of a PM, remind them that after one month they already paid 8.5% in lost rent. At some point they are paying to play PM.

Min Zhang · Answer

Hey Sunoo, you should check out the Rent Zestimate on Zillow as well as Rentometer to get an idea of how much a typical unit rents for in that area

Drew Sygit · Answer

All good advice so far!

One of the biggest challenges though, is comparing quality of property vs comparables.

So, be sure to check out ext & int pics to gauge that.

John Morgan · Answer

I get on Zillow and compare mine with current homes listed for rent nearby. Apples to apples today. Then I list mine for $100 under market rent and usually get them rented out within 48 hours. That’s always been my strategy for the 33 properties I own.

Jim Johnson · Answer

Hi Sunoo!

Good question — comps are the starting point, but not the full picture, especially if units have been sitting.

Most of the time I look at three layers:

1. Active competition (not just leased comps).What else is currently listed that a tenant would realistically choose instead? Price, condition, concessions, and days on market tell you more than last quarter’s lease numbers.

2. Absorption and time-to-lease.If similar units are taking 30–45+ days to rent, that’s the market signaling resistance. Pricing slightly under the cluster can often outperform sitting “at market” for weeks.

3. Condition-to-price alignment.Photos, finishes, parking, laundry, pet policy — small differences matter. If the unit isn’t clearly better than the competition, it shouldn’t be priced at the top of the range.

I’ll also watch listing traffic in the first 7–10 days.Strong inquiries but no applications usually means screening criteria are too tight.Low inquiries usually means price or presentation is off.

If they’ve been struggling for months, the market has likely already answered — the question is whether pricing is aligned with today’s demand, not last year’s comps.

Kevin Lee · Answer

I use rentometer with a grain of salt and use the lowest number and then check to see how rentals have gone with zillow.  You can have a rough idea of what they were listed for and how long it took to remove off market (The rent may have been negotiable).

Sunoo Bertsch · Answer

Appreciate all of the responses! I've gone and looked at the estimates on Rentometer and Rentrange. I see what you guys mean about taking things with a grain of salt. They seem incredibly high given the current comps I've seen sitting for a few weeks.@Jim Johnson Really helpful input. I think laying it out this way is going to help me convince them to allow me to lower the pricing to a more realistic number. Much appreciated, good sir.

David Peschio · Answer

We use RentRange and just like @Kevin Lee said we do that with a grain of salt.  Looking at Zillow as well - not saying the price they indicate is accurate but we look since that is what applicants will see.  Do our own research as well and come up with a range.  We might start on the high side but visit it weekly looking at the interest and crunch the numbers to see if we need to adjust.

How are you determining rental pricing?

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