Is a Zillow premium listing for a rental worth the cost?

[Bob H.]

Zillow suggests that I spend $29.99 for a premium listing, promising that renters will see the listing more often because it appears higher in search results. I find this vague. I'd like to know what I'm getting for my money.

First, I tend to look for listings on a computer and focus on the map, not the search results alongside the map. I suppose, though, that most people search on phones and the search results are more important on those devices. But how much more viewing would I get for the Zillow fee? I once paid for a premium listing, a few years ago, and did not notice any difference, but how could I tell? To really know the result, I'd need to be advertising two identical properties -- one with a premium listing and another with a regular listing.

Does anyone have experience that clearly shows a result from using a premium listing?

[Pat Aboukhaled]

Hey Bob,

I hear you. I've worked with dozens of investors who have tested both the standard and premium listings on Zillow. From what I’ve seen, the value of a premium listing really depends on a couple of factors: the local market's activity and how saturated it is with similar rentals. Let me break it down a bit from personal experience.

A buddy of mine out in Scottsdale tried Zillow’s premium listing for his condo a few months back. He had used the free version before and decided to go "all in" this time because the rental market was tight, and he wanted to stand out. The results? His unit got more attention and inquiries, but funny enough, the renter he ended up signing had found his original free listing weeks earlier and only called back because the timing was right. So, while it did boost visibility, the premium status didn’t clinch the deal.

Another client in Austin had a dfferent experience. He ran two almost identical rentals..one had the premium listing, and the other didn’t. We found that the premium listing got about 40% more inquiries. That might sound good, but keep in mind that quantity doesn’t always equal quality. He ended up sifting through a lot of unqualified leads. On the flip side, another client of mine used the premium option and got a highly qualified tenant almost immediately. It really came down to the fact that it was a slow market period, and his rental stood out because there weren’t as many options at the time.

From a tech perspective, Zillow’s boost can help in areas where renters rely heavily on mobile searches. I would consdier where your target demographic is looking. If your area has a lot of young professionals glued to their phones, the premium boost could help push your listing to the top, which means more eyes.

Hope this helps..or at least gives you a few ideas to consider

Jasper, the Pat Boukhaled investor team,
Turning investment visions into reality in Phoenix, AZ - ranked #1 for residential real estate growth and opportunity by PwC.