Smarterlandlords want to maximize their investments by maximizing rental income. That means they need to be charging top dollar for their rental properties. Problem is, how do they know what to charge? Here are some tips and tools to help.
- Talk to other landlords. Most have no problems telling you what they get in rents because they want to verify what they are doing as well. Where do you find other landlords? You can find then at your local REIA.
- Scan Craig’s List. Most landlords will put “for rent” ads up on this site. You can refine your search in a variety of ways and target your market.
- There are several other tools available online. Use them to establish a base. But be careful. Some of the data on these sites can be a bit misleading. So know your market. Here are a few of the most popular.
- Hotpads.com – The place to find your place. Do a search here like you would for Craig’s List.
- Rentmetrics.com – Claims to be real time rent comparable data for real estate professionals. I took a look around for my area and was impressed.
- Renometer.com – Paying too much or charging too little? Cool site but it gave me quite a range for my area.
- Zillow.com – Search the for rent section to see what you can find. This site is nice, but it also gives me quite a range.
Remember however that these websites only show what rent was being asked for. They do not really show you what the landlord actually got in rent. So again, use these sites as a starting point.
- Finally, depending on your market, you may have to drive around and look for “for rent” signs and give them a call. Some markets are just not going to be as accessible on the internet.
Once you have done your research, try putting your property on the rental market for as high as you think it can go. If it does not rent in a week or so, you are likely asking too much, drop the price until you find a renter. Only then will you truly know how much the rent is.
