How would you determine rents for a townhouse in an upscale area with large houses, and very few other townhouses. Another nearby equivalent area has a huge upscale apartment complex? One nearby townhouse rents for $1450 while another that is very similar is being offered for $1000 (a very wide range). Apartments with the same number of bedrooms and bathrooms rent for ~$1300. The houses are twice the size as the townhouse, so I don’t think they offer a good comparison. Would you expect a townhouse to rent for more than an apartment where they are both very similar in terms of size, style, build quality, features, garage space, etc. The townhouse is in an area with a clubhouse and pool, but not within walking distance. The apartments have a huge clubhouse and pool.
Tough call without some comps to compare. I would expect the townhouse to rent for more than the apartment but less than the SFH assuming that all the units are reasonably equal. You can either start high and risk losing a few months rent as you drop the price or start “low” and get a quicker rent.
I rent nicer townhouses but the areas I rent in are reasonable active with rentals. When a renewal is coming up I scan the papers and craigslist for a month or 2 beforehand for comparable rental ads to try and get a good feel for the market. I generally price at the bottom of the competitive range since 1 lost month rent can be 6 months of profit.
I’d try digging a little more for comps. Try attending a local Real Estate Club meeting and asking seasoned landlords.
jmd_forest
I use www.zilpy.com if it is available in your area or I look at Craigslist postings.
My experience is a townhouse rents for something inbetween a Single Family Home and an Apartment.
call some local realtors up. Tell them your trying to decide between renting your townhouse or selling as you are moving into another home. They will come by or at their office give you some comps. They do not need to know the truth, but if you need a story tell them you recently got married or something and your new wife has a home you will occupy.
Gilbert,
Without going into too many details and some people may argue otherwise, you are going to get whatever the perceived value of your townhouse is as far as collecting rent. Someone may see something they like better about your townhome than an apartment and may prefer to rent from an individual rather than an apartment complex’s management company. Having done both, I can attest that there are pros and cons to both.
You may be able to check out Craigslist and see what comparable units are going for. It is a terrific barometer to see how much rent you can charge for a rental lease agreement.
You may also want to investigate any vacant units at the complex so you can get a better idea of exactly what they have that you don’t and vice-versa. That way, you can know what to emphasize on your advertising.
Good luck!
If the town house is similar to local apartments, tenants can’t see any difference: town house, condo, they are all apartments to a tenant. If they aren’t buying, what difference does it make what the dwelling is legally called?
Thank you for the responses. I received some great information as usual.
I assumed the rents would be similar. We really have a very limited number of units to compare it to, which was appealing. Unfortunately, the deal went from very appealing to lousy as the negotiation progressed.