General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 3 years ago,
Raising Rent in a market without comps
Good Morning/Afternoon BiggersPockets community,
It is the time of the year for me to raise the rent on my property, however I am bumping into some issues that I would need some recommendations/suggestions how to approach it.
I live in an area where the SFRs rentals are quite rare ( 2000 population ), but the demand for one from future tenants is insane, because it is a tourist town, therefore there are not many similar comps to my property or if any, the property I am comparing it to is not in the best condition.
-The First approach I was contemplating is show them what the rents are going for around town, (e.g) 3 bedroom/2 bath apartment was going for $1400 with washer and dryer but without a garage, back yard or patio OR a brand new apartment complex 3b/2b are going for $2000+ with heated garage, exercising facilities, conference rooms, etc.
My SFR rental is currently renting for $1500 and it is 4b/2b, 2 story house with almost 1 acre of a lot, wooden deck and 2 garages with room for 3+ cars and the basement is used for a storage unit. I have recently replaced washer/ dryer and done minor cosmetics improvements. The tenant base in this town is B - to C.
-The Second approach was to include the rental increase statistics in the United States in addition to the first approach.
I know that I can raise the rent on this property, because at the time we were marketing it for rent in the 1st hour we have received about 20 inquiries and it got even better later on with more.
There is a huge demand for that kind of property to be a rental, however from all these approaches I don't think it is fair to the tenant, because the Comps I am giving them are not similar to the property and also I don't think I can use the rental statistics around the country simply because I can't compare Phoenix, AZ rental market to the market here.
FYI, I have gone to most of the websites that are providing rental information such as rentometer.com and when I type the address of the property, there is not enough data. Also, I am familiar with the whole neighborhood and know which houses are for rent. Some might say, have you reached out to realtors to ask for help? YES. Realtors here are only working with the typical family who is not investing and are not really investor friendly.
Looking forward for suggestions!
Thank you for your time!