Are you moving into a new neighborhood? Are you a landlord about to offer a new unit to tenants?
It's very likely you're either a landlord or a tenant. In 2016, 36.6% of the population rented their homes. This is the largest percentage of renters since 1965.
This means now is the best time for the renting industry. The first step for either tenant or landlord is to know the average rent in the neighborhood. As a tenant, you don't want to pay too much when you can get a unit of the same quality for less.
As a landlord, you could lose potential tenants if they realize you're charging too much. If you're charging too low then you're losing thousands of dollars in monthly rent.
Before starting to calculate the average rent in your neighborhood, make sure to remove all unnecessary variables. This means trimming down the factors of rentals you don't need.
Are you looking for single-family units or multi-family units? Do you need to compare prices of homes that allow pets? Do you need to compare places that package utility bills or not?
Some of the variables you should consider before comparing prices include:
These factors will help narrow down the type of unit you're going to rent or, in case you're a landlord, going to offer. You can then proceed to research the average rent for this kind of unit in your neighborhood. You can start by asking several landlords in the area.
Most neighborhoods can be located on our site by their ZIP code. The detailed report includes the median gross rent for the area. Median rent means that half of the rents are higher and half lower. Gross means that utilities are included.
The rent information is collected from official US Census Bureau data. Try it out below and look under the Home Prices Score:
The easiest step is to drive around the neighborhood and stop by every property with a rental sign in front. Not all of these will fit into your trimmed down category but you'll still get a fair answer from the ones you ask.
You can then take the rental prices from the ones that fit your category and compare the prices. You'll see which ones cost the most and which ones don't.
By asking other landlords you can determine what's the median rental price and how many properties charge below or above that line. At the same time, you'll see the variable factors that raise or lower their prices.
Some rental homes might be in places where the crime rate is high. Others might be cheap because it's an old part of town. If you communicate with the landlords, they may even tell you why they set their prices the way they did.
69% of the population still read newspapers. This number includes all formats, whether print or online. This means you'll find many rental home ads in the local newspaper.
You can compare the price of rental homes in the paper. Keep in mind that you shouldn't limit yourself to ads in print newspaper. Many newspapers are going online and may even have a mobile app.
There is one downfall with comparing prices found in newspapers. Posting ads in the newspaper isn't cheap so landlords who take this route are often the ones offering expensive units.
This might not give you a fair comparison if you are looking to compare low to medium value rentals.
Also, since you are online reading the newspaper, take a moment to do some online research. There are many websites that will allow you to compare prices and calculate an average price.
Some of the first sites to go to are an MLS and Craigslist.
MLS stands for Multiple Listing Service and these are official realtor sites that let you see all of the available properties. Craigslist is a classified ads website where people can post their own ads, including rentals.
It is important to note that Craigslist is not the most reliable source. While there are many legit posts, you'll also run into a lot of scams. It can be a little difficult to determine which ones are real and which aren't so always be careful with that site.
Don't stop after looking at the prices of other rentals in the area. Being online opens a lot of opportunities, such as researching the neighborhood's rating. This rating will let you see some of the following:
You will want to see how these factors affect the price. You can use these factors further to trim down your price range again.
More than 60 million companies now use Facebook Pages. You can find many real estate companies and Facebook groups on the platform. Use this to your advantage and communicate with them to list down an average rental price.
You can join groups of people residing in the area. After joining, you can create a poll to ask them for price suggestions based on the description of the rental property. This will give you a good baseline coming from the local crowd.
Make sure to use social media to its full potential. You can check other people's post and see what they think regarding the place you're interested in.
Real estate websites might state a place is good but the opinions of the local residents may reveal a hidden truth. You should use this information to adjust the price range you're aiming for.
Don't waste time. Get a baseline now.
Not sure what neighborhood scores mean? Do you need more information about a specific place? Do you want a definitive average rent number?
Start by getting a neighborhood score and see if your price range fits with the data. Instantly see how your target neighborhood fares in terms of crime, education, and the economy.
We can provide you information about any local area in the United States. We'll do the research for you and grade each category to let you know at a glance how viable that area is. This makes your research much faster and more reliable.
Feel free to contact us and we'll help you discover more.