Does anyone ever look at what apartments are renting for to help determine how much an area can support for rental rates on SFH? I’m looking at a 3Br house and the 3Br apartments in the area are renting for $900. Is it a good idea to assume a 3BR House would rent for at least that amount and maybe even more, especially if you are offering rent credits?
I use www.craigslist.com and have been amazed at the response rate. Just select your city and enter what u are looking to rent, the results should tell you the rents in the area, some even show pictures so u can sompare ur property
The best way I know of to find rental rates is to drive through the neighborhoods near by and call on For Lease or For Rent signs. Maybe even call a For Sale sign and see if the Realtor knows what rates would be. From all of these you should be able to get a good idea.
If you are offering rent credits, then you are not marketing to renters. Instead, you are marketing to potential buyers.
Rents on a lease option property should at least cover your PITI and add a little more for cash flow. Often this amount will put you above market rents for similar properties (houses, not apartments). The amount above the market rent could be offered as a rent credit.