Setting a final rent price is part art and part science. Use the tools at hand, but also take the time to consider the details from the perspective of a potential tenant.
One of the most common questions we get asked is “How much would this property rent for?” And we’ll answer that for you for free – just fill out this form.
Software and the internet have made estimating rental rates easier, but it still takes some experience to get the right rent for every property.
The Byrd Property Management – Rent Estimate Process
Check Available Estimates
Today, Zillow gives rent estimates for most properties, via the website’s “Rent Zestimate.” If the property isn’t listed for sale or rent, the “Rent Zestimate” is usually at the top of the property page on Zillow.
Because Zillow is an automated tool, you need to make sure the stats are accurate. In the case of the house above, Zillow has the wrong stats completely. This is a four-bedroom house with two full bathrooms, so we know this Rent Zestimate is off.
Another source for automated rent estimates is Rentcast.io. This website provides free rent estimates. Just enter the address and basic stats, and it generates a rent range.
Using this tool on the same house we see drastically different rent estimates. So where do we go from here?
Check Current Rental Listings
It’s time to think like a tenant. If you’re trying to estimate a house with four bedrooms, search for nearby houses with four+ bedrooms and see what the rent range is for similar properties. In this case, we see there are rentals with four+ bedrooms and they start at $2,000/month.
But don’t stop there! Click on some of the lower-cost options, and scroll down to the property details. On Zillow, you’ll see days on the market, contacts, and applications (if the property uses Zillow applications). In this case, we see a high number of contacts, so it’s possible those properties are actually under priced. Thelow–end for our four-bedroom house is around $2,100 based on nearby comps.
Consider All the Property’s Features
After looking at the automated tools and seeing what’s on the market, we should be able to come up with a pretty accurate range for the property. In the case of the house we’re looking at, Byrd would put this range from $2,000 – $2,400. Now, how do we reign this into a final number we should use when we list the property for rent?
- It’s time to look at the features in detail:
- Consider the number of bedrooms
- Size of the rooms
- Overall size of the property
- How does that compare to others?
- Is the property in good condition relative to nearby properties?
- How does the kitchen look? Has it been updated recently?
- Does the house have a usable yard? Is it fenced-in?
- Is there a deck, patio or screened-in porch?
- What about a garage?
For example, the house above has four bedrooms, but it’s a little smaller and some of the bedrooms are on the small size. Because of that, we’d aim to the lower end of our range. On the plus side, the house has a nice yard with a privacy fence. Looking over the details, Byrd would recommend listing this house for rent at around $2,200.
As you can see, there are ways to get a rental range automatically, but taking the time to consider all the details from the standpoint of a potential tenant can make all the difference when setting your rent price.
