Rent comparables are an excellent tool for you, as a landlord, to learn about similar properties in your area and how to price your rental. When you list your rental home on Apartments.com, a rent comparables report is just one of the many tools you'll have in your property management arsenal. In this guide, we will explore rent comparables, how to analyze them, and how to use them to make the best rental decisions.
What Are Rent Comparables?
Rent comparables, or rent comps, compare properties located in the same area that are similar in size, number of bedrooms, bathrooms, and amenities. Rent comparables help you determine a fair market price for your rental property since you are provided a snapshot of what other renters pay. According to a survey of experienced landlords, 80% use rent comparables to help them determine the correct rent price for their rental property.
Utilizing Apartments.com: How to Find Rent Comps and Boost Your Rental Revenue
When determining the price for your property, it can be helpful to select a similar property as a reference and consider its reasonableness. However, it is important to set your property at a competitive price. Factors such as age, size, and the number of bedrooms and bathrooms should be considered. You can also test the market by initially setting a slightly higher price and being open to negotiations or ready to lower the cost if there is limited interest from potential tenants. One experienced landlord recommends starting the rent high and reducing it each week until the unit is rented out. Another landlord advised considering several pricing factors, such as the neighborhood’s desirability, income, and seasonal demand.
Understanding Rent Trends: A Guide to Market Insights on Apartments.com
Apartments.com rent trend pages can provide valuable insights into the average rent and market prices across thousands of cities in the United States. You can easily find information about the average rent for studio, one-bedroom, two-bedroom, and three-bedroom rentals, as well as the average square footage. Additionally, you can track market trends over the past two years to see if rent has decreased or increased. This comprehensive information serves as a great starting point, particularly for first-time landlords.
Enhancing Exposure: Effective Marketing and Access to Rent Comps
If you decide to list with Apartments.com, you can advertise your rental property on a network with millions of monthly visitors. Our national marketing campaign reaches 95% of U.S. renter households across TV, video-on-demand, streaming, audio, display ads, social media, paid search, and podcasts to drive more renters to your listings. Plus, you get free rent comps, which you can use to showcase different amenities that other properties near yours don’t have.
Learning from Others: Tips on Rental Pricing from Experienced Landlords
As you look at other rental properties in the area, seek advice from other rental owners, managers, and landlords and ask how they determined their rental prices. Ask them if they have any tips for you as a landlord or how to price your rental when it’s time for renewal.
Download Rent Comparables on Apartments.com
You can access rent comparables if you have rental tools enabled on Apartments.com. On your Apartments.com Rental Manager account, you can pull your rent comparables report under “Reports” on your customer portal. These reports pull information from your rental property and in the surrounding area to give you a good idea of the current market rates. To ensure your rent comparables report is accurate, update your listing to show all available units and any changes that occur. Once you have downloaded your rent comparables report from Apartments.com, you can see properties in the area with the same number of bedrooms and bathrooms. In each report, you will know the year the properties were built, how many units they have, how much they charge for rent, and their rent per square foot. You can also see the change in rent year over year. If you have noticed a lot of construction in the area, then the last pages of the report show you all the properties under construction and when they should be completed.
Additional Tips for Using Rent Comparables
While rent comparables offer valuable insights into the rental market, maximizing their use requires the consideration of various factors. Here are some additional tips for leveraging rent comparables effectively:
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Look Beyond Base Rent: While base rent is a crucial aspect, don't overlook other expenses that tenants may incur. Consider additional costs such as utilities, parking fees, pet fees, and amenities when comparing other rental properties to yours. This comprehensive approach ensures you offer competitive pricing while maintaining profitability.
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Consider Seasonal Variations: Rental demand can fluctuate seasonally, influencing rental prices. Factor in seasonal variations when setting rental rates, adjusting prices accordingly to capitalize on peak demand periods and attract tenants during slower seasons.
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Account for Property Improvements: If you've made significant improvements or renovations to your rental property, consider how these enhancements impact its value compared to similar properties in the area. Highlighting these improvements can justify slightly higher rental rates and attract tenants seeking upgraded accommodations.
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Stay Flexible and Responsive: The rental market is dynamic, and rental prices may need adjustments based on changing demand, competition, or economic conditions. Be prepared to adapt your rental pricing strategy, whether it involves periodic rent increases, promotional offers, or incentives to attract tenants
By incorporating these additional tips into your use of rent comparables, you can refine your rental pricing strategy, attract quality tenants, and optimize your potential rental income.
Remember, setting the right rental price for your property is crucial for attracting tenants and ensuring your rental income is maximized while still being competitive. Rent comparables can help you ensure you’re not setting your rent too high or low to help you find the perfect tenant.
Originally published on October 6, 2023
