Determine The Rental Value

Comments(9)

• 
  illusvfyre28th August, 2003

  I'd like to know that too. I've gotten so many conflicting answers on how much rent would be. I've got about a $300/mo spread. Any help narrowing down would be awsome.
  
  Scott

• 
  Leo_Investor28th August, 2003

  I usually scroll through the local newspaper ads in the paper for other properties similar to yours in size and location. I think it's the best way to get an idea toward how much market rent is in a particular area and property.

• 
  housebyr28th August, 2003

  Looking through the papers is usually a good way to find out what rents are going for. You can also look at web sites for property management companies that handle rentals. You will find a lot of information there to help you out. One thing to consider is apartment buildings. If you have a lot of them in your area with cheaper rent, you might find yourself competing with them for renters if you are priced to high.
  Have a great day
  housebyr

• 
  Vern28th August, 2003

  Hello Hrash,
  
  You can get a realtor friend of yours to pull the rental comps for that area. You can call other landlords and ask their price for units like yours. You can rent low and have the unit rented in a short time frame. Rent low and rise the rent 7% and the end of the lease. There are a lot of things you can do to make sure you are getting top dollar.
  
  I would rather be a few dollar below the max rentals in the areas than to have the unit sitting empty for a month or two.

• 
  2000rock29th August, 2003

  hrash,
  
  "are there any resources on the net that can help me determine the rental value of an investment property?"
  
  Wow...I don't think so...too many variables...
  
  What are the house stats ...and GoHere:
  
  http://www.hcpafl.org/disclaimer.html
  
  That may help you...
  
  
  ....as always,
  
  
  GoodInvesting, Rocky

• 
  richar181st September, 2003

  Hi,
  
  if you want to know fair market rents for your county, go to the HUD webpage:
  
  h u d u s e r . o r g
  
  and go into the "datasets" category on the left hand menu. once in this category, look in the right hand menu, and you will see 50th percentile rents, and fair market rents. Hope this helps!
  
  -Brandon Richardson-

• 
  Medusa521st September, 2003

  simple. call rental agencie, get list of everything in your neighborhood for lease, determine the cost per sq ft per month, bingo! adjusted for condition ect. my area goes for 90cents to 1.10 per sq ft per mo. 1999 brought 1.10 per sq ft here in Motown area, recent mortgage rate drops and auto belt tightening caused most recent .89 cent per sq ft lease/agreement with 1 1/2 mo. sec.

• 
  GFous20th September, 2003

  Two approaches - Market and Cost
  
  Market approach involves reviewing competition, availablity and comparing prices and doing a CMA.
  
  Cost approach is based on acceptable cap rates in your area for similar properties and basing your rent on NOI required to achieve the desired cap rate.

• 
  DaveREI20th September, 2003

  Your rental value is based on direct comparables..... thats it!
  
  What can the market afford to pay where the property is located....
  
  You need to determine this, you do the research, you determine the price!