When you are considering purchasing a rental property or if you already own one, it makes sense to know what that property will rent for. Here are some steps to take to figure that out:
1. Start with some websites such as www.Zilpy.com and www.RentOMeter.com. These will give you comparable rents in the subject area.
2. You can also look over our Rent Survey here: https://www.homepointe.com/svyQ110.pdf if your property is in the greater Sacramento Area.
3. Finally, I would suggest you drive around and see what the competition is charging. Get out of your car and see some of the vacants near your rental. You need to know what tenants are paying your competitors. You also have to compare what features your apartment has vs. the competition and make any indicated adjustments.
Those three things will give you a pretty good idea of what your rent should be. You could probably figure this out in 3-4 hours.
One note of caution. Try to avoid believing that your property is much better and therefore will command a higher rent. Instead, think like a tenant who wants to save money and will settle for clean over granite countertops to save money. Granite is not going to get you substantially more rent.
Comments(4)