{"id":3945,"date":"2018-05-30T10:13:15","date_gmt":"2018-05-30T17:13:15","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=3945"},"modified":"2022-06-16T13:39:56","modified_gmt":"2022-06-16T20:39:56","slug":"how-to-find-the-fair-market-rent-for-your-rentals","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/how-to-find-the-fair-market-rent-for-your-rentals\/","title":{"rendered":"How to find the Fair Market Rent for your Rentals"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9344 size-large\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-find-the-Fair-Market-Rent-for-your-Rentals-600x343.png\" alt=\"Fair Market Rent\" width=\"600\" height=\"343\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-find-the-Fair-Market-Rent-for-your-Rentals-600x343.png 600w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-find-the-Fair-Market-Rent-for-your-Rentals-300x171.png 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-find-the-Fair-Market-Rent-for-your-Rentals-610x349.png 610w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-find-the-Fair-Market-Rent-for-your-Rentals.png 700w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>One of the many roles of a property manager and landlord is setting the right rent amount for an investment property. \u00a0The right price for a rental property is a balance between wanting to maximize your income from rent payments and wanting to ensure the property is continuously occupied by trustworthy tenants. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The U.S. has seen tremendous growth in the rental market in the past decade, with r<\/span><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-08-13\/renting-in-america-has-never-been-this-expensive\"><span style=\"font-weight: 400;\">ent prices steadily climbing throughout the nation<\/span><\/a><span style=\"font-weight: 400;\"> to accommodate the high demand for rental housing. \u00a0\u00a0<\/span><\/p>\n<p>This news might make it tempting for owners to immediately assume they can charge top dollar for their rental properties, but rent prices are affected by market rates specific to the location of the property. \u00a0Here are some tips that will help you determine an appropriate amount to expect tenants to pay to live in your rental property, based on finding out the fair market rent in the area.<\/p>\n<p>The right rent amount is determined by finding out what similar properties in the neighborhood rent at, known as the fair market rent.<\/p>\n<h3>Factors that affect a rental property\u2019s monthly rate include:<\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Number of bedrooms<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The inclusion of utilities, like electricity, gas, water, or Internet <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The allowance of pets on the property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Property extras like additional storage, garage, parking, or backyard<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Property amenities like those found in multifamily complexes like pools, laundry, recreation room<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A relatively new factor that can drive a rental property\u2019s rate up or down is its <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/2015\/01\/how-important-is-the-walkability-score-when-trying-to-attract-tenants\/\"><span style=\"font-weight: 400;\">walkability score<\/span><\/a><span style=\"font-weight: 400;\">. \u00a0Walkability is a term that determines a property&#8217;s proximity to stores, restaurants, transportation, schools, etc. \u00a0<\/span><\/p>\n<p>Evaluate each property you own and determine the answers to the categories above (this also helps you develop the marketing features of the property when you advertise the property to future tenants). \u00a0Use this information to find comparable rentals in the neighborhood and town of the rental you are determining the rent rate for.<\/p>\n<h3>Find the Fair Market Rent Rate for your Rental Properties<\/h3>\n<p>There are a few ways find information about rent prices in your area for properties similar to yours.<\/p>\n<h3>Go Online<\/h3>\n<p><span style=\"font-weight: 400;\">It sounds simple but a quick search on Craiglist is a fast way to give you a baseline for rent prices in your market. \u00a0Other <\/span><a href=\"https:\/\/www.rentecdirect.com\/details\/publish_vacancies.php\"><span style=\"font-weight: 400;\">rental listing networks<\/span><\/a><span style=\"font-weight: 400;\">, like Zillow, Trulia, and RentPath are also places to find this information online. \u00a0You can set search parameters by neighborhood and number of bedrooms to start, and then narrow in on other specific property features that could affect the rent price.<\/span><\/p>\n<h3>Go Outside<\/h3>\n<p>Drive around the neighborhood and look for \u201cFor Rent\u201d signs posted on available properties. \u00a0These tend to list property features and rent prices, while also providing insight to the curb appeal for the property and how it compares to yours.<\/p>\n<h3>Go Old School<\/h3>\n<p>The local paper is another option to find rental property prices in your region. \u00a0While rental listings in local papers are less common than online sources, they are still used by a wide range of landlords looking to market vacancies and find new tenants.<\/p>\n<h3>Go to the Pros<\/h3>\n<p>Another great way to find market rent data for an area is to ask industry professional like other landlords and\u00a0property managers. \u00a0You can join\u00a0a local professional landlord association to network with industry professionals or find a local meetup. Your peers are an invaluable resource and most want to network with people from similar backgrounds just like you.<\/p>\n<h3>Beyond Fair Market Rent<\/h3>\n<p>Additionally, there are several resources online that allow a property manager to access rent comparison tools that will help you discover rental rates in your area, compare them to similar properties in the neighborhood and assess the potential return on your investment.<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.padmapper.com\/\"><span style=\"font-weight: 400;\">Padmapper<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 Provide a zip code or address to find local properties that are available to rent. \u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.rentometer.com\/\"><span style=\"font-weight: 400;\">Rentometer<\/span><\/a><span style=\"font-weight: 400;\"> \u2013<\/span><span style=\"font-weight: 400;\">Rentometer is the easy way to <\/span>compare your rent<span style=\"font-weight: 400;\"> with other local properties<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.zillow.com\/\"><span style=\"font-weight: 400;\">Zillow<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 Zillow offers \u201cRent Zestimate\u201d data that can be found by entering any address into their search.<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.zilpy.com\/\"><span style=\"font-weight: 400;\">Ziply<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; Enter an address to find out a property\u2019s projected rent amount and assess the marketability of the property by examining crime rate, school ratings and demographics, and more.<\/span><\/li>\n<\/ul>\n<hr \/>\n<h3>Related Reading For You:<\/h3>\n<ul>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/the-true-cost-of-renting-an-apartment\/\" target=\"_blank\" rel=\"noopener\">The True Cost of Renting an Apartment<\/a><\/li>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/home-warranties\/\" target=\"_blank\" rel=\"noopener\">Wondering About Home Warranties for Rental Properties?<\/a><\/li>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/tenant-surveys-what-to-ask-and-why\/\" target=\"_blank\" rel=\"noopener\">Tenant Surveys: What To Ask and Why<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>One of the many roles of a property manager and landlord is setting the right rent amount for an investment property. \u00a0The right price for a rental property is a balance between wanting to maximize your income from rent payments and wanting to ensure the property is continuously occupied by trustworthy tenants. \u00a0 The U.S. [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":9344,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[807,808],"class_list":["post-3945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-fair-market-rent","tag-rent-rates","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to find 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