Estimating Rents in Growing Market

[Brad Jacobson]

Hey BP Team,

My wife and I currently live about 30 minutes North of Salt Lake, UT.

The UT market is appreciating faster than I ever imagined. Our personal residence has appreciated double figures every year for the past three years.

What tips and tricks do you use to nail down potential rent prices in such a volatile market? I believe our personal residence could rent anywhere from $1,500 to $1,800 per month but I see so much rent fluctuation in our comps that it's difficult for us to nail down estimates for both our current residence and other potential purchases.

Thanks in advance!

[Jay Chang]

Rentometer is good for approximating your rent. If you want to see comps, try apartments.com. Find three houses that are similar to your residence, and the average of those three houses should give you a fairly accurate rent. 

If you want to be really accurate, considering visiting the actual houses by pretending as a potential renter. This way, you can make sure that the finishes and appliances are comparable. Of course, this method is a lot more time consuming.