How do you find good rent comps?
Where to Find Rent Comps
Finding rent comparables, or "rent comps," is an important step in determining the appropriate rental price for a property. Rent comps are similar rental properties in terms of location, size, condition, and amenities that have recently been leased. If you're not using HelloData, it will definitely take a lot longer, but here's how you can find rent comps the old-fashioned way:
- Online Real Estate Platforms - Use websites like Zillow, Rentometer, Trulia, or Craigslist (in addition to property websites wherever possible) to find rental listings that are similar to your property. These tools let you filter your search by location, number of bedrooms and bathrooms, and other amenities to match your property as closely as possible. The problem is, they don't account for ALL of the factors that contribute to comparability, and they don't put the data in an easy format for analysis. It takes a while to collect this data, and even longer to format and analyze it. If you want to see how we condense hours of work finding rent comps into just a few seconds, check out this article.
- Local Property Management Companies - Contact local property managers to inquire about rental rates for properties similar to yours. They often have comprehensive knowledge of the local market.
- Real Estate Agents - A local real estate agent can provide rent comps and additional insights into the rental market. Some may offer this service for free, hoping you'll use their services in the future.
- Networking - Real estate is a people business. Talk to other landlords and real estate investors in your area. Local real estate investment groups or online forums can be a good resource for this information.
- Property Appraisal and Data Services - Companies that specialize in real estate data and analytics can provide rent comps, but they may charge for their services.
- Local Classifieds and Bulletin Boards - Check community bulletin boards in local businesses or libraries, and classified sections in local newspapers for rental listings.
- Visit the Neighborhood - Sometimes, you'll find "For Rent" signs in front of properties that are not listed online. Walking or driving around the neighborhood can provide additional comps. Nothing really substitutes for doing your own research on the ground... unfortunately, not even AI.
- Government Housing Agencies - In some areas, local housing authorities maintain data on rental rates, which can be used to assess affordable rental prices.
Which Factors to Consider for Comparability
When you're evaluating rent comps, you should always consider the following factors:
- Location - Proximity to amenities, schools, public transportation, and desirability of the neighborhood.
- Size - Square footage and the number of bedrooms and bathrooms.
- Condition - Age of the property, recent renovations, and overall maintenance.
- Amenities - Features such as in-unit laundry, parking, outdoor space, and air conditioning.
- Lease Terms - Length of lease term, deposit required, and whether utilities are included.
The rental market can fluctuate based on the time of year, economic conditions, and local demand. Make sure your rent comps are recent, ideally within the last 3-6 months, to ensure they reflect the current market conditions. Fortunately, with HelloData, you don't have to do any of that. We automatically identify, analyze and recommend the most statistically relevant multifamily rent comps in any market using AI. Learn more about how we identify the best rent comps using AI: Rent Comps
