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?
Thanks
Jeff
Jeff:
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.
Good Luck.
I use the newspaper, and look at what the rents are for a specific area, you can get the average, and based on the looks go up or down from that.
Or contact a property manager, give them the area, the square footage, number of Bedrooms, # of Bathrooms, and they’re pretty much dead on.
Remember if you’re too high, it’s negotiable, if you’re too low, you’ll only be stuck with it too low for one year!
Good Luck!
jdowdle,
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.
I do a comparitive market analysis on the MLS and also look in the local newspaper…