How do I determine rent price for a property?

Question

Hello BP!I am a new real estate investor, currently doing research and looking to buy my first investment property soon. Can anyone tell me how to determine how much a SFH can rent for in an area?

And before I get yelled at for not doing my own research... I do know of rentometer.com, craigslist, and Zillow has a section that shows estimated rent. However, I get varying results when comparing those 3 and just wanted to know if anyone could tell me how to get the most accurate rent estimate for a property.

Thank you for any advice!!

Kathryn Daniel · Answer

I rely on Rentometer, Craigslist and Zillow when pricing my rentals. I also use Sean's methods above. Determine how your property compares in terms of finishes, amenities, parking and laundry situation, etc. and adjust accordingly. Once you list your property you can always adjust the rent as needed if you're getting too many or not enough inquiries and applications. I hope that helps.

Sean Lunny · Answer

Hey Jacob, congrats on getting started.

I would do just that - search those sights and get a feel of what the inventory is comparable to a unit similar to the one you own/want to own, in the zip code you want to buy in.

Rentometer and Craigslist have always done me right.

Somethings to consider when running the comps -

Location (neighborhood class - a,b,c,d etc???)

Size (ft2?  Beds/Baths? How is the layout?)

Quality (how does it look? nice hardwoods or old carpets? newer appliances and fixtures or are they dated?)

Amenities (Washer/dryer? Close access to public trans? off street parking?)

Side note - I always ask myself "Would I pay X AMOUNT to live here?"

Hope this helps and good luck.

Jacob Compton · Answer

Thanks everyone! Glad to know I am on the right track. I will be more specific with finding properties with the same finishes/amenities as mine.

Elise Hazzard · Answer

@ Sean Lunny, I agree completely.

Property class and amenity have a lot to do with price. Of course, supply and demand can help drive the rents also.

The data from all the sites might be a little soft if there are few rentals in a 1/2 mile radius, so it really helps to be objective when you compare your rental with others listed on various sites (zillow, trulia, hot pads, etc.)

Good Luck Jacob and welcome to the clan!

How do I determine rent price for a property?

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