Posted by phil fernandez on December 25, 2000 at 09:07:21:
George,
I would initially get your local paper and go through all of the apartments and houses for rent section. Call on some of the ads and go out and physically check out the units. After awhile you will get a good feel for market rents.
Also call up some of your local manangement companies and ask what they are getting for one and two bedroom apartments or what they are renting out 3 bedroom two bath houses for.
If you know other landlords in your community ask them. They are usually very helpful. Join your local investor group. They can tell you about rental rates.
The more information you can gather on rental rates, the more accurate you will become in determining fair market rents in your area.
It seems to me that determining market rents for a given house or apartment is a bit dicey. I would appreciate some pointers from the pros as to how to get a feel for the rental market in a given area. Obviously, this would be important before buying property in terms of establishing value.
Re: Determining market rents - Posted by Ed Garcia
Posted by Ed Garcia on December 25, 2000 at 10:53:36:
George,
Finding information such as comps etc., can very from state to state. There are a few other ways you can obtain this information as well. A good real-estate office should have this information at their beckon call. Firms such as Coldwell Banker and Marcus & Millichap, should have geographics, demographics, comps, etc. Appraisers can provide you with a rental survey for an extra 50 dollars.
The truth of the matter is, if you’re going to be an investor, you should know your market. Phil Fernandez, has not only given you some good sources, but excellent advice on how to get involved in the market, and the best way to know your market is to spend TIME in it. Once you’ve done that, you will be able to operate with complete confidence.