Multi Family Rent Rates

[Pete Perez]

Hello BPers!

I have a question about rents for multi families. A lot of the guides I've read on BP mentioned speaking to other investors in your area about what they charge for rents, using online resources like Zillow, Truilia, Craigslist, etc. 

My question is how to determine a competitive rent to charge for a unit in a multi family home? For instance I plan on moving to Washington state soon, and I've been using Tacoma as an example. I've seen online that SFR 3Bed 1 baths 1000-1200 Sqft, that are in good condition rent for between $1200-$1400 per month.

So if I have a unit in similar condition, similar size and same number of beds and bath, can I charge that rate? Or would I need to charge a slightly lower rate since its a MFR?

I guess this might be a silly question, but I just couldn't find the answer online anywhere, so I thought i'd ask people with experience. I don't think this is really limited to Tacoma I am just using that as an example as I have been researching that area. 

Thanks everyone!

[Michell P.]

@Pete Perez

Hey Pete, 

Yeah, often multifamily rents for less - but keep in mind SFR often don't include utilities while MFR do. You also want to look at apartment complexes in your neighborhood and see what services they offer vs what you offer.

So, if all utilities are included you can raise the rents a little. 

W/D included? that's worth more. 

Yard? Privacy? worth more. 

Pool / gym? worth more. 

Next to school? worth more. 

Next to a crack house? uh, lower your rent.

It might help you to make a list of standard services and average prices and see if your unit is above or below the average.