The Financial Freedom Blueprint-(7/8/23)-Determining Market Rent for your Rental Properties

Hey everybody!

Welcome to another edition of “The Financial Freedom Blueprint” where we discuss the topics of real estate and financial freedom.

My goal is to help as many people as I can get started investing in real estate and eventually reach a goal of financial freedom where they can create a life they don’t need a vacation from.

Today, I wanted to discuss how you can determine market rents for the properties you are renting out.

Knowing how much potential income you can get for the property is important as you want to make sure it is enough to cover the mortgage payment and then some.

Having a good idea of this number prior to purchasing a property is essential.

Here are 3 ways to determine market rents:

1) Rentometer

This is a software that allows you to plug in any address along with the bedroom and bathroom count.

It will then pull up comparable properties in the area to see what the rent is for those properties.

Make sure you also check the condition of the property as that will also make a difference on the rental rates. Renovated homes demand higher rents than properties that are cosmetically outdated.

Rentometer does include a monthly/yearly description, but is a very good place to start!

2) Zillow Rentals

Not only is Zillow used for searching properties for sale.

There is also a feature in Zillow that allows you to see rental rates for properties.

I would also encourage you to look at Zillow Rentals to find market rents and see what similar properties are renting out for in the area.

As a reminder, pay attention to the condition of the property and the bedroom/bathroom count.

3) Local Property Managers

Last, but not least, most property managers will have a pulse on the market and know how much properties will rent for since they are leasing them out on a daily basis.

By talking with property managers in your area, you should be able to get a better idea of market rents.

In conclusion, knowing what a property will rent for after you fix it up is so important to the success of your business.

By using all 3 of these tips, you should have a much better idea of rental rates.

Well, that is all I have for today’s newsletter.

Thanks for reading through to the end and I will talk to you all next week!

P.S. - If you have any questions, don’t be afraid to reach out to me. This helps me come up with more topics to write about.

Active Investors

If you want to learn how to purchase your first investment property within 6 months, but don’t know what steps to take, please schedule a call with me using the link below to see if my coaching program can help.

The main strategy I teach is the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.

I’ll help you minimize beginner mistakes and shorten the learning curve from years to months.

 https://calendly.com/cedarriverproperties/introductory-coaching-call

For Everybody

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Disclaimer: My newsletter should be viewed as educational content and should not be construed as actionable advice without consulting the proper professionals.