Rental rate question

[Adam B.]

I am concidering purchasing my first rental property and I have a few questions for you seasoned pros. I appologize if these seem like a stupid questions...

I am able to look on the mls to see what other propreties are ASKING for rent, but does that mean that is what it will actually rent for? I know if a house on mls is asking $100k, it will not sell for $100k, so by that logic it makes me believe that if a rental is asking $1,000/month it probably won't get that. Or does the rental market not work that way? Do you landlords out there get low balled on your rental rates? If so, is there an average % that you tend to get negotiated down to? Or do rentals normally rent for their advertised rate?

I am trying to remember when I used to rent, and I don't recall low balling my rent offer. I remember either paying the rental rate or looking else where... but that was like 10 years ago.

Thanks!

[Jon Holdman]

I personally don't think the MLS is a good source of rental information. Perhaps it is in your area.

1) Look on places where people really advertise for rent houses. Craigs list, local sites, rental sites, perhaps even the newspaper.

2) Drive the area and look for "for rent" signs.

Start calling. Ask about amenities, deposits, whether or not utilities are included, rental restrictions, etc.

Then, look at this data to get an idea of what rents are for your specific property in your specific area.

Once in a while a prospective tenant asks if I will take a lower rate than what's advertised. Unusual, though.