How to estimate what I can charge for rent

Question

Besides comparing to other rental single family homes in the area (I use Zillow) how do I best determine what I can charge for a monthly rent that won’t be too high or especially too low. Utilities will be separate from monthly rent.

Drew Vrska · Answer

Reach out to fellow investors in the area and see what they are getting for rent. If you feel comfortable with this, you can also ask close friends or family that rent in the area what they are paying to get an idea

Rick Albert · Answer

In my experience Rentometer has been inaccurate. This is because it takes a general look. So if you have a lot of comps of tract homes where they are all identical, then it may be more accurate.

You have to look at the competition. This is because tenants are looking at the same thing so it becomes a game of alternatives.

What I like doing is go on Zillow, look at the competition, but scroll about halfway down. That shows you how many views and applications they may have received. If the days on market have been long and they haven't gotten a lot of interest, then it is likely overpriced.

You could also go on Zillow Rental Market Data and they can give you averages for an area. Just keep in mind that the more refine you make it (bedroom count, type of property), the less homes the average can come from, which may not give you an accurate reading.

Ned Carey · Answer

@Charlotte Wilson there is something called Rentometer online to compare rents. We also have a rent estimator tool here under the analyze deals tab although you have to be a pro member to use that.