Determining how much your rental property should rent for?

Question

I’m looking to buy a rental property in the near future and was wondering how I could determine what to rent my place for?

Kenneth Garrett · Answer

@Devonte Thomas

You need to run comps just as if you were flipping a property. Use multiple sources, compare numbers of bedrooms, baths, finishes, neighborhoods, schools, square feet, similar style homes, etc. Use sources like rentometer, Zillow, Trulia, Hot Pads, Apartments.com, MLS etc to calculate your market rent. In real estate everything is market driven. Be realistic about your rent and try to be objective when you look at your property compared to your competition.

Devonte Thomas · Answer

Thank you...very much appreciated!

Michael J. Abel · Answer

I have used rentometer and compared that to the rental CMAs from my real estate agents. Your agent should be able to provide you with one if you ask.

Michael Helfant · Answer

Like everyone else is saying, need to use comps. But find other investors/realtors in the area as well and they will be able to give you a good idea. In our market, rents are crazy right now.

Theresa Harris · Answer

As others said, look at the comps. It will also give you a good idea of where to list your place for rent in your local area.

Work with a realtor who deals with investors as they should also know what places can rent for.

Stephen J Davis · Answer

It is all about the comps. Then, don't get greedy. Go with the average and get it leased ASAP. Most price their house at the top and it goes vacant for a month longer than necessary due to the higher price. If your rent was $100 higher than the average, you lost more than that by losing that month.

Determining how much your rental property should rent for?

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