Pricing Rents In Small Market

[Jacob Stokes]

Hello everybody,

I have a problem. I am trying to maximize my profit and max out the rent for my place in my small market. I have a 2bd 1ba that's completely renovated nothing fancy but all around a solid new/old house. With that being said I've seen similar places not as nice but the specs were the same and they around $650/month a year ago. That's when we bought the property but now that we are close to renting it out I can't find anything to compare it to. I have bought the paper and 0 classifieds, I have posted on different For Sale or Trade sites and not much feedback. Also spent an hour driving around town with the wife and kiddos trying to find For Rent signs and nothing. Just looking for some tips on how to narrow down a realistic top rent price? Any help is greatly appreciated.

[Kyle J.]

@Jacob Stokes While it can be hard to price a rental if there are no/limited comps, I’m not sure a newspaper and yard signs (or lack thereof) are the best gauge. At least in my market, those are not the most popular places to advertise rentals. 

In addition to the good advice that has already been given, perhaps try some other sources. Zillow, Rentometer, Craigslist, and Facebook Marketplace are all example of popular online places where people commonly list their properties for rent. 

Also, do you have any local property management companies in your area? Perhaps interview one (or more) of them and see what they’d recommend charging.

Lastly, check out this article and maybe you’ll get some other ideas: How to Determine Fair Market Rent

Best of luck.