Learn more about how our team determines the going rate for rent at your property.
As your property management company, we want to ensure your rental property achieves its maximum earning potential. Setting the right market rent price is a key factor in maximizing your rental income. We use a few important tools and methods to determine the optimal market rent for your property:
What sources do we use for comparables?
Rentometer
This website analyzes comparable rental listings in your area to provide a recommended rent range for properties like yours. Rentometer looks at active listings, recently leased comparables, and rent history trends from their large rental database to suggest a competitive and profitable market rent price range.
MLS Listings
We also research current and recently leased properties comparable to yours on the Multiple Listing Service (MLS)/Matrix. This realtor tool allows us to see real examples of what other similar rental properties have been listing and leasing for.
How do we review comparables?
Not every property will be helpful for us to determine market rent. If a property falls outside the following criteria, it may not be the best indicator of what a tenant is willing to pay for a property like yours.
- Location: Properties in the same neighborhood or within a 0.5-2 mile radius are the best indicator of value.
- Rent Date: Active listings and rents within the past 6 - 12 months will give a more accurate picture of rent rates.
- Square Footage: Within 100 square feet of your property's size (both greater than or less than)
- For example, if the property is 900 sqft, looking at properties between 800 - 1,000 sqft is ideal.
- Bedrooms: Same number of bedrooms.
- Bathrooms: Same number of bathrooms.
- Features: Similar amenities and upgrades like renovated kitchens, AC, garage, etc.
When the number of comparables is low with this refined data, we extend the criteria to develop a more accurate picture of the market.
Can I look at the comps?
Absolutely! We can send you a PDF from Rentometer or Maris for you to review where our findings came from. We're more than happy to show our work upon request.
What if I disagree?
Please know that our team comprises a combination of licensed realtors and individuals with backgrounds in loan process and appraisal review. We use our experience and evidence to develop our best opinion of value. However, value is truly in the eyes of the beholder, just like beauty ⭐. A property's value is whatever the general public is willing to pay for it. We are always willing to test the market, so long as you are willing to look at the data with us and make strategic and timely decisions and adjustments based on what the data says.
As your property manager, we stay on top of the local rental market conditions to advise the optimal rent pricing strategy. Our goal is to maximize your rental income while keeping your unit competitively priced with neighborhood comparables. Let us know if you ever have any questions about how we determine your market rent!