How much should I ask for in Rent?

[David Stremic]

Hi all,

We have a property near NCSU's Farmer's Market and campus. 1520 sqft 3 bed 2 bath with granite top counters and partially furnished. Other houses in the area have been rented for around $1900 to $2200. Any thoughts on how to estimate what we should rent it at? Thanks

DS

[Cory J Thornton]

@David Stremic - It is difficult to say without more details, but that range sounds plausible. When doing comps, start with any similar properties in the same neighborhood. If there are not any, then try not to pull comps crossing any major roads or landmarks (river, bridge...). It sounds like you have a home in a fantastic location! 

There is a rent estimator tool in BP. I would use it to help you inform the range of rents you take into account or to find addresses for recently rented property. Unless the tool picks up enough data, it seems to skew low (in my experience). If you planned to self manage the property, then there are tools like Rent-O-Meter that do a good job pulling comps. If you are working with a management company for the management or for just lease initial lease up then they will have to tools needed to figure out the top dollar for your property. 

There is still a ton of rental demand in the Raleigh market. If you are not pressed for time, it may not hurt to develop a range, post it for the top of that range, and then see what activity is generated. If you don't get an application in the first week, the price is too high and you can start backing it down at $25-$50 at a time  ...  good ole price discovery in action! 

Best of luck. If there is anything I can do to help, feel free to shoot me a PM.