How to find market rental rates

Question

What's the easiest, most accurate way to find market rent rates where I'm looking at a potential investment?  This is an older part of town with no large apt complexes - I'm looking at a couple of duplex/triplex type units.

Brian Garrett · Answer

Check the MLS, Craigslist, and/or sites like Rentometer.com for comps.

Assuming you don't want to use a realtor of course.

Matt K. · Answer

I thought we were talking about the easiest and most accurate way to find market rate for a rental,  not the easiest way to show a rental.

Matt K. · Answer

The most accurate.... find a property manager who has properties or is familiar with that area. MLS isn't that good of a source for MOST areas, since not a lot of people use it for rentals. Zillow is usally really bad, if there's not a lot of rentals in the area it'll likely be way off.Craiglist will give you idea of what properties are listed at but pay attention to how old ads are. If someone is asking too much the ad will be up for a really long time. Hotpads is a good alternative if there is lot of activity in the area ....

Antoine Martel · Answer

You can check zillow.com rentometer.com hotpads.com.

Then enter in information about your property and the unit you will renting out.

Find a couple of comparable properties and see what they're renting out for and then take an average.

Jacob Wathen · Answer

@Jared Lillard, I agree with @Amy Herzing and @Matt K.. One of the best ways to do that is to contact a property manager that works throughout the city. They should be able to give you a great idea based on your location and accounting for all of the specific criteria.

Also like  @Brian Garrett said you can use a realtor. They do need to be well versed in the rental market though. I was in a room full of agents (probably 30) yesterday and only 2 others knew what the approximate market rent for an updated 2/1 in SE Portland should be. In our market agents do not work with rentals frequently though. So it depends on your market and it depends on the expertise of specific agents.

Matt K. · Answer

When you say do, are you saying they go and show the rental that they found on MLS that's managed by someone else. That someone else being the person who sets the rent? The agent merely shows the property and collects a commission if it's rented. They have no say (nor care) in the quality of tenant. Or are you saying the agent is acting a PM who will manage the property, screen the tenants, and set the rents?

Brian Garrett · Answer

Simply because in my market realtors do a LOT of rentals and they are very familiar with market rents as they should be.

Matt K. · Answer

Curious why you think realtors are a good source of info for rents? Many realtors sell owner occupied and many rentals aren't shown/done by realtors. That's why people use a property manager.... who may also be a realtor, but that's in addition to being a PM.

Jared Lillard · Answer

Thanks for all your input, guys.  I appreciate the help.  Hopefully I can return he favor soon!

How to find market rental rates

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