Then read on. You are not alone to make mistake when figuring our optimum rent for a renal property.
If a rental property is priced high then good tenants will stay away from it. Prospective tenants who have good credit scores and income have options and always look for deals. If a landlord wants to get this pool interested in the rental property the the pricing has to be optimum.
Haw a rental is priced can have catastrophic effects for landlords. And it can be argued that a lot of the tenant related problems can be traced back to rent amount. Charging high rent will only attract renter will not so good profiles. High rents also encourage rental application fraud. If the rent
How do you select the rent for a rental property? There are a few number of resource available to a landlord. Two of the most popular are Zillow‘s Zestimate, rentometer. Experience tells that both these options can be “way off” optimum for a rental property.
Zillow computes Zestimate using a proprietary formular. The data used for calculation comes from public property data and similar local properties. The problem with this approach as that there isn’t that much data available publicly on rental properties as most of them do not get listed on MLS. And in with in a neighborhood there can be differences from property to property. And Zillow admits that by saying “there may be special features, location, and market conditions our algorithms have not taken into account. Variations in rental price can also occur because of negotiating factors, special incentives, and length of lease.”
Rentometer uses their own database to provide rental price estimates. It will give you a good “ballpark” number or “close enough” estimate. Just like Zillow’s Zestimate, rentometer rents are only as good as data in. The data is based on zipcodes, so where zipcodes cover smaller geographical areas the data tends to be better. For areas where zipcodes are 10 miles long or more, not so much.
