How do you know if you are charging enough rent for your Los Gatos Rental property!? It’s hard to find the right balance since most home owners and property managers don’t have reliable statistics to base make the right decision.
Insisting on maximum rent for your Los Gatos property could come at the expense or losing a tenant to a similar property that is cheaper.
One option to hire experienced Los Gatos Property Managers to help you set these rents. But you now have some ready resources as well thanks to a website called RentoMeter. With RentoMeter.com you cantest drive your desired rent for your Los Gatos rental property.
The site allows you to input you to input your property info below:
1) Property Address
2) Number of Bedrooms
3) Expected or Desired Rent
Then the site display a round dial (seen in the image above) which shows where you expected rent ranks among the nearby properties. The Site uses a 0.6 mile radius to find similar homes using only the bedrooms to find the match!
The challenge with this website is that there is no other input fields besides the one’s listed above that might impact a potential tenants interest in paying more for the property. For instance, if you had pool, extra storage, detached studio that could be valuable to tenants, there is no way to adjust for them using this application.
The other problem with the pricing model here is that caps the maximum number of bedrooms at 6 which means it’s not suitable for pricing multi-family or much larger homes that have more than 6 bedrooms. Finally, the site should include the number of bathrooms which in our opinion impacts the decision of tenants on the value for rent.
We tested the site with one of Rental properties in Los Gatos that we manage. We used $5,500 for desired rent and 4 bedroom and got the following results:
- 77 4-bedroom rentals
- …in a 1.56 mile radius.
- Median rent: $3000
- Average rent: $3587
- 20th / 80th percentile: $2500/ $4500
- 10th / 90th percentile: $2395 / $6100
This is very good start for landlord and property managers who might need to do a quick rental survey when they are assigned a new property. We do much more extensive Property Profile using County records which includes a Rental Market survey as well.
With the dial clearly in the Red, this is a clear indication that your rent is in the upper range of the 90th percentile and will only appeal to the 10% of the potential tenants.
Based this input, you could discuss this report with your Los Gatos Property Manager to finalize a rent that will get you the long term tenant you should be looking for.
Let us know.