More accurate rental estimation

[Xin Peng]

As title suggested, there are estimations from BP calculator as well as other websites (Rentometer, Zillow etc.), but IRL multiple factors could impact rentals (location, appliance, interior/exterior design etc.). How can I take into account those factors to get a more accurate estimation on rentals (similar with comparative market analysis)? Or take one step back, is this the right direction (the CMA approach)? Thanks.

[Michele Fischer]

In my area, adjusting for utilities included or not is the biggest swing, since there is a not a standard. But I do look for other things and make adjustments. Maybe seeing my system would be helpful:

I base 25% of my calculation on $/square footage. For the bedroom count in question, I grab the low, high, and average $/square foot for the past 3 months, and apply that rate to the square footage of the new/vacant property, to get to an average to weight 25%.

I base 15% of my calculation on the average market rent for the bedroom count in my target neighborhood. So if others have been getting $750 for a three bedroom over the past 3 months, I give the $750 a 15% weighting.

And I base 60% of my calculation on geographical comps. I look for three or four listings with the same bedroom count that are one block either direction from the new/vacant property, making adjustments for features to make the properties comparable. For example, if the comparable listing has a garage but the new/vacant property doesn’t, I subtract $25/month to make them comparable. I use $25/month for all of the following features: allowing pets, garage, dishwasher, and washer/dryer included.

Your methods, amounts, or details may vary, but it is a framework to consider tweaking.  Our aim is to be in the middle, not the highest or lowest rent.  We want plenty of interest when a unit comes available, but to not be flooded with interest.