OfflineNow that most markets throughout the United States have shifted, creating a heavier rental markets, I want to look at finding suitable rental comparables. Because, there are those that would like to know: How much should I charge for rent in my area?
You can find rental comparables from any of the following:
- Realtors – because they often have a feel of the market and can use the MLS to get information for you.
- Property management companies – They know rents.
- Newspaper or the Internet – You can see what others are charging. If there is a trend this can usually be what you can charge also.
Once you know what the market will allow you to charge for rents on the property finding the demand for rentals can help you to know how competitive you will be.
In you area to help you determine the demand you can find:
- How many rental property are located in the area you are looking to rent.
- What the average vacancy rate for properties similar to your subject property and as a whole.
- Average time a property takes to rent (the vacancy period)
Knowing this information can help you to know if you will be competitive and if you need to lower your rent to keep your vacancies down.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Hasn't been talked about a lot in here, but very important to those of us using buy & hold strategies. Thank you.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
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GREAT INFO!!!!
I might add that all rents are not equal. By that, I mean that with some rentals (houses, mostly), the rent does not include water, which the tenant pays for himself. That rent would be lower than if the owner pays the water, and an adjustment is needed. The same thing applies to other items that are or aren't included in the rent, even cable TV, electricity or trash. Of course, the size, age, and condition of the living area and the lot may require adjustments as well. Finally, it should be asked how long ago the rent was set, and if there any family or good-buddy connection that could cause the rent to be low.
If you can get answers to all these variables, your conclusion will be much more accurate.
cactusbob