Accuracy of Rental Tools for Utah

[Diane Darling]

Hi, so I was looking through some properties in the SLC area and a lot of times the owner claims that it rents out for a lot more than the value that the Bigger Pocket Tools indicates.  I'm also looking at the available rentals and there seems to be a big difference.  It says a property of mine in Sandy can rent out for $2000 a month, but I am seeing duplex, smaller rental properties, and even homes in West Jordan listed for way more.  I am wondering if the rental tool on bigger pocket is accurate and if not what do you guys use to determine rental value when you are buying a rental home investment?

[Bob Stevens]

Quote from @Diane Darling:

Hi, so I was looking through some properties in the SLC area and a lot of times the owner claims that it rents out for a lot more than the value that the Bigger Pocket Tools indicates.  I'm also looking at the available rentals and there seems to be a big difference.  It says a property of mine in Sandy can rent out for $2000 a month, but I am seeing duplex, smaller rental properties, and even homes in West Jordan listed for way more.  I am wondering if the rental tool on bigger pocket is accurate and if not what do you guys use to determine rental value when you are buying a rental home investment?

 If you need a tool you should not be doing the deal, Hands on learning is the best 

[Carl Davis]

Quote from @Diane Darling:

Hi, so I was looking through some properties in the SLC area and a lot of times the owner claims that it rents out for a lot more than the value that the Bigger Pocket Tools indicates.  I'm also looking at the available rentals and there seems to be a big difference.  It says a property of mine in Sandy can rent out for $2000 a month, but I am seeing duplex, smaller rental properties, and even homes in West Jordan listed for way more.  I am wondering if the rental tool on bigger pocket is accurate and if not what do you guys use to determine rental value when you are buying a rental home investment?

Just because other properties are listed as more does not mean your property could rent for the same price. I like to use the lower number ($2000) as a baseline and run the rest of your numbers off of this number but list it a bit higher. 

I just closed with a client on a house hack in West Jordan and they’re going to rent the upper level in their home (3/1) for $2000/mo.

[Caleb Bailey]

I have found a lot of the rent comp tools come in low, it is good to use them to kind of get an idea and then I'll use KSL or Facebook marketplace to confirm them