One of the most difficult parts of Property Management is find the right amount of rent to charge for a property.
The part of the difficulty is that you will need to charge market rent for your home that allow you to cash flow the property without risking a long term tenant who will move if he’s paying too much rent.
To find the market rents, you will need to conduct a market survey of the similar properties that are available for rent within 2 mile radius of your San Jose home. But instead of an expensive Rental Survey you can use an application called RentoMeter.
RentoMeter displays the range of rents that nearby San Jose rental homes are fetching!? Well, there is such a website called RentoMeter.com which allows you to test drive your desired rent for your San Jose property. The site allows you to input you to input your property info below:
- Property Address
- Number of Bedrooms
- 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 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 San Jose that we manage. We use $5,500 rent for desired Rent and got the following results:
- 60 6-bedroom rentals
- …in a 7.95 mile radius.
- Median rent: $4500
- Average rent: $4837
- 20th / 80th percentile: $2990/ $6375
- 10th / 90th percentile: $2698 / $7925
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. As you can see from the red dial, the 90th percentile of the rent is $7,925 but the maximum rent is shown as $9,750 but it’s well in the Red which might not be a wise marketing strategy for your rental.
What do you use to make your final decision on the rent?! Let us know.