How do you find rent prices in specific area?

Question

Hello Everyone,

I am a beginner in the Real Estate Investment game, and I am having a bit of trouble finding what other owners charge in a specific area whether it be an apartment complex, single-family, condo, etc.. I would assume the only way to be sure is to ask the realtor, but then you go down this rabbit-hole of other questions.

What do you all do, or suggest?

Will Fraser · Answer

HI @Shane Davis, welcome to the REI game!  Sad to say here that a realtor won't be of much help.  You're best bet is a savvy property manager in the area, but if you're looking to not use that service, then I'll share the other tools I use to assess rent values:

• - Rentometer -- gives me a good basis of "rent comps" in an area that I can do further research on and determine if the indicated value range of rents is true for my property.
• - Zillow Rentals -- this may of may not be true in all markets, but in my market over the past 4 moths the rental Zestimate has become remarkable useful for most cases.  
• - Look on Zillow/Trulia/Hotpads at other things for lease in your immediate context.  Regardless of true "market rent rate" the willingness of any tenant to pay $X is determined by whatelse they can get for $X . . . if everyone in your area is overpriced by $200 then you might be able to rent at $100 over market value simply because the others are more inflated.  So, check your competition . . . they can help or hurt you here.

Steve Morris · Answer

Apartments.com and rent.com allow you to sort down to a ZIP code.  These will give you ASKING rates, but not too much other detail otherwise (like concessions, utility billbacks, parking charges), but it's a start.  You'll need to determine if your property is competitive (i.e. are the others class A and you're a class C-) and why your place is better.

They have people calling all the time to verify these, which is your other option.  Make a list of competing properties and secret shop them - Which is time-consuming.