Updated September 29, 2020
Do you know how to find average rents to value your property correctly?
You need a rent estimate to know how much to charge for rent and how not to undersell your property. There are many different tools available and methods you can use to create an address rent report and determine how much your property is really worth.
Rent Estimate Tools Available to You
There are many ways to get a rent estimate on a property and calculate rent prices to get the most out of what you own. You can find a market-rate rent calculator online, or look for a landlord app or landlord rent calculator to help you figure out property values and rent prices. There are also rental property apps and websites that display rent statistics. A simple neighborhood search tool may be all you need to obtain a rent estimate for the area where your property is located.
There are free options available to anyone like Craigslist, Rentometer, Zillow, Apartment.com. By searching through their listings or using their tools, you can find a good starting point for an average rental rate.
Keep an Eye on Rental Property Listings
Real estate is a good investment, but only if you handle it properly. A survey from "Better Homes and Gardens Real Estate" shows that 89 percent of U.S. investors are interested in the real estate market. Without knowing what your property is worth and getting a good sense of rental prices in the area, you're not going to be maximizing that investment. You may even fail to make a profit. Real estate can be and should be a highly lucrative market. Manage your property well, and it should bring you a nice sum of extra money.
Start paying attention to your local area. Look at rental property listings around you and see what's happening with the real estate market if you're considering investing in some property. The best way to succeed in the real estate market is to stay informed. Good rent estimate tools and staying on top of real estate news should keep you in the black and keep your properties turning out profits for you.
How to Calculate Rent Prices
Calculate rent prices for your property, looking at other rental listings in the same area. To come up with a proper rent estimate, you'll want to look at properties that are similar to your own. Look at apartments or houses with the same number of bedrooms and bathrooms to determine how much you should be charging for your rental property. Looking at rent statistics in the area is the best way to calculate rent prices for your own property.
If your rental listing is newer or nicer than similar properties in the area, you can always charge a little more for your rental space. However, be careful not to charge too much more than the going rate in any local area. People won't want to pay more too much more than their neighbors, even if they have extra features and amenities that others don't.
Also, consider whether your property has amenities that others in your neighborhood do not, such as a two-car garage instead of a one-car garage. Does your property have a fenced-in yard or a private outdoor space? Have you taken the time and money to update the rental with new appliances, flooring, or paint? If so, these are extras that others may not have and allow you to charge more in rent.
Start with a reasonable rent estimate. Over time both your rental and the market will change. If you keep up on improvements and adjust rent accordingly, you'll start making a profit off your real estate investment.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology. If you liked this article, subscribe to Rentometer's email newsletter to stay up-to-date on the latest trends in rental housing.