How are different-fourplex rents considered

Question

So I haven’t done enough research into this but I’m sure it’s common sense. I figured I’d ask anyways, well I was wondering when charging rent for your tenants how are du and four plex rents considered? Like an apartment’s rate or house? I’ve seen those two are kind of different.

Alecia Loveless · Answer

@Julian Broyles They’re based on what the market will sustain. So you’d need to figure out what other similar properties are renting for.

I’ve got some that I inherited that should be raised but weren’t because one man is elderly and already had his rent raised by $150 but it’s still at least $50 under market value. Two others in that building are also under market value but the seller raised them to sell so I can’t just raise them again so quickly.

I’ve got another that I inherited in a different building I plan on raising because the demand for units is so high in that town.

So it’s all about market demand. I could rent any of those units for more money.

You can go to open houses to find out local rents, call advertisements, call property managers, check Craig’s list, flyers at the store, etc.

Matthew Bowling · Answer

If I understand your question correctly, you are asking how to determine rental rates for multi-family properties?

Julian Broyles · Answer

@Cody Neumann

I figured the rent could be estimated from sq ft too. At least that’s what I’ve heard from the podcasts

Cody Neumann · Answer

@Julian Broyles

It depends on your market. Normally number of bedrooms play a huge roll in rents but square footage can as well.

To figure this out look at bot apartments and small multifamily to determine what would be a good price.

You can also use rentoneter.com for an average rent of the area.

Julian Broyles · Answer

@Brendan Miller

Thank you. That helps narrow it down.

Brendan Miller · Answer

@Julian Broyles there shouldn’t be that big of a gap in rents strictly due to SFH or Apartment, it’s likely due to a difference it SF, amenities, or condition of the home. For a 4-unit, I typically wouldn’t look at comps for SFHs, I would look for other MFH rent comps or apartments, how apartments can skew the numbers due to amenities available versus 4-units

Julian Broyles · Answer

@Matthew Bowling

It’s easy to know this but idk where 2-4 units fall place. Are they marketed as apartments or sfh prices?

Julian Broyles · Answer

@Alecia Loveless

Right as far as rent for apartments and houses I know the rent. But idk where the smaller multi family fall in line.

In Indianapolis, the property management company I work for has 4 bed 2 bath for median 15-1600 but people are saying that a duplex with a 3 bed 2 bath is marketed at like 870.

How are different-fourplex rents considered

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