Determining Expected Rent

[Nicholas R Murray]

I am an aspiring multi-family investor in the process of learning how to analyze deals in preparation to buy a 2-4 family property in the next year. As part of my learning process, I have been trying to implement a system for evaluating the expected market rent of a specific property based on the size, # of bedrooms, # of baths, location, and amenities offered. 

My current approach has been to look at Zillow, Trulia, Craiglist's, etc for comparable properties currently posted for rent in the location; however, since I'm still learning I'm not sure if this is the best approach to determining market rents.

For anyone who currently owns/operates rental properties what is your current process for determining market rent? Do you have any tips, tricks or websites that are invaluable in your process?

Thank you in advance for your help!

Best,

Nick Murray

[Morgan Klein]

Nick, in addition to the things you're already doing with Zillow, et al. (which is a good baseline, btw), joining a local real estate group, either in-person or via Facebook, etc. is a good place to get local knowledge of rents. One thing I like to do that I don't see many people talking about, is joining Facebook Buy/Sell/Trade groups in the area you're investing. People will often post places for rent, and the comments are a great place to get information. People will not hesitate to comment on if a place is price too high ("you crazy!"), too low ("that's a STEAL!") or if it's just right (they'll start tagging people they know).