Updated June 7, 2021
Historically, about 33% of renters move yearly. It would be helpful for property managers and landlords to know how to find average rents quickly. This will ensure they are prepared for the next round of vacancies and filling the property with tenants paying current market rates.
Determining current rental rates, like many management tasks, has an easy way of going about it and a difficult way. Doing everything by hand using an outdated manual process is the hard way. The manual process could be searching the newspapers for listing or searching different listing sites online. The best way for any property manager or landlord would be to get an app with built-in rent estimator tools. A rent estimator tool can be one of the easy ways to find average rents in your area.
A Rental Rate Calculator Is a Must
Rental property management, whether you are an owner or a manager, is a tough job. Any tool that can make the job easier is a tool you should have in your management arsenal.
An app designed specifically to help calculate rent prices can take the work out of knowing what your rental is worth. It can also help to reduce human error.
What Is the Real Market Value of Your Rental?
Proper property management starts with having the accurate data you need to make decisions about your property. When you calculate rent prices, it is about what you can charge for your rental and making decisions about the rental property's value.
For example, knowing the average neighborhood rent can help you:
- Determine what type of updates you want to do to your property or not get the best ROI on your investment.
- Understand what other rentals in your area are charging can help you increase your rates based on similar property conditions and amenities when renewing a lease.
- Understand average rent prices in your area by using a rent estimator can help you best price your rental for quick occupancy. If you find current rates higher than what you have been charging, you can increase your rates and still be priced under the competition. This makes your property look like a great deal in the tenant's eyes.
- Perform due diligence on possible rental property purchases by showing you what you could reasonably earn in monthly rent.
Property Reports and More
The right app will not only help with how to find average rents. A powerful app designed for property managers and owners can also give you the property report information you need to advertise a property effectively. Property reports like the ones found in Rentometer Pro can give you the historical trends for rents in a given neighborhood. This will help you see the seasonality of the rental and if you need to increase your rents based on these trends.
The reports also show the distribution across different rental types such as one-bedroom, two-bedroom, three-bedroom, and four-bedroom units. You'll also be able to see on the map where comparable properties are located and, with your real estate knowledge, decide if a rent adjustment is appropriate for your property.
With the batch analysis, you'll be able to compare two or more properties. You'll be able to see if there are any rent discrepancies in your portfolio. You can address these rental rate discrepancies when a tenant comes up for renewal.
The right tools will simplify the entire management process. Tools can help ensure that you work with accurate data for all your management activities. They will help you keep up with market rents. They can also help you understand how to bring in cash flow in any real estate market. There is an easy way to get information and a hard way to get information; you get to decide which way will benefit your business.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.