Rental property value estimator for Austin/RR/CP areas?

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Hold up! Rental rates are not an exact science. It can vary DAY to DAY and from property to property!! I use rental comps as a ROUGH guide only! I DECIDE what to charge, forget the comps!!! Now I am not stupid about it. There are toooooo many factors that decide the rent! First and foremost is the motivation of the owner/property manager and second is the motivation of the perspective tenant!!!!!! Let me approach this from the owner, since that is who I am! Is my property paid off, YES! Is my property better quality than surrounding or like properties......generally YES! Where are we in the rental cycle, summer, winter, bad weather, good weather ect. Did I just experience a bad renter and thus more determined to get a high quality renter. Am I financially stressed and therefore need it rented right away. Do I have 60, or 30 or no notice of tenant leaving! All these factors can have a SIGNIFICANT impact on what you settle on rent. IN the Austin market, you ABSOLUTELY can get a BIG PREMIUM on a high quality property vs average. Not so much in Bryan TX. I have many properties in each market. Bottom line for me is that I generally am lagging market rents, especially in Austin and here is WhY. My tenants don't leave, I am not stressed for cash and I have or keep upgrading my properties. Therefore, I have very low turnover and my goals have changed from maximizing $$$ to a blend of good $$$ and ease of management!! So if I have good tenants I don't raise rents for at least two years and when I do I increase very modestly on existing tenants. I started out over 15 years ago, initially scared of losing a tenant and now I welcome anyone who wants to leave as I know I will get more rent when they leave. For some reason I hate raising rents on existing tenants but have no problem on a new tenant. Case in point. Had a 3 plus year tenant in Round Rock leave on a three bedroom 2 bath duplex unit. She was paying 1200 month. I am now renting for 1500 a month and had over 50 applications. I still rented too low but got great tenants, I think, and life is good. Renting is an Art not a science. We haven't even discussed the motivations of a tenant looking for a place. Cheers!

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Hi vivekJoe explained it very nicely. According to me, rent estimation should be taken as guidance instead of precisely calculated because meanwhile you put offer, close and come to market to rent, that number could be different +/-. As others mentioned, teaming up with local realtor will help to get more closer estimate compared to rentometer. -Jay

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Well said!

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It's depends on the house and neighborhood.

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I am really confused. When we look at the comps we can see 2500sqft house will earn $2700 in 78664.But you talk to any property manager in that area and everyone says $2000 to 2400. I dont understand what is happening. There is no place to get any proper answer. Can someone help me. What rent should a 2500sqft house get in 78664 area. Also when u buy anything for appreciation howmuch cashflow is OK. Are people going with negative cashflow just for appreciation?

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@Vivek Sapre as many have mentioned here your Realtor should be able to easily grab these from the MLS. Austin has a particularly active MLS and most rental listings get posted there resulting in the most comprehensive rental data.

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Not all rentals are listed in the MLS but it is the best place to get rental comps. I can tell you in the last 30 days we have seen Zipcode 78644 homes between 2600 and 2800 square feet go for $2200-$2900 depending on home condition and features. Getting a Realtor to give you accurate rental/lease comps would be the best way to know what a place would rent for. Not only do you want to see rental value but how quickly those places are renting as well.

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I can most certainly say that getting above 2300 to 2400 might be tough unless it's loaded with upgrades or relatively new built home. Home Prices have risen crazily but rents haven't caught up.

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Thanks. Are all rentals listed on MLS. Some may only be listed on the property managers site.

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@Vivek Sapre the information you seek can be found in the multiple listing service (MLS) which is accessed by a licensed and subscribed real estate agent.