January 9, 2013

Rental Comp Data for January 2013

Bit over a year ago I wrote an article documenting the Rental Comp Data for November 2011 for our rental properties.   In that article I checked the rental rates via Rentometer.com and documented them for Nov. 2011.   I wanted to keep a record of previous rates so I could see if rates were going up or down.  Its a bit over a year later so I figured it was time to pull the numbers again.

Here is the current data for our rental properties as of January 2013:


2bed* 3bed 1bed 1bed 3bed

house house apt apt house
10% $700 $695 $425 $400 $950
20% $850 $842 $425 $425 $950
median $900 $995 $510 $460 $1,095
80% $1,000 $1,050 $535 $540 $1,225
90% $1,100 $1,100 $625 $620 $1,295
 # prop                23               21               22               24               53
 dist              0.5             0.8             0.6             1.3             0.4

Comparing the current median numbers to the previous Nov. 2011 numbers we have :

Jan-13 $900 $995 $510 $460
Nov-11 $895 $875 $495 $495
change 1%* 14% 3% -7%

For some reason when I did the comps for Nov. 2011 I listed property 'A' as a 3 bedroom but its actually a 2 bedroom.   I don't know if the rent figures for A in Nov. 11 were for a 2 bed or a 3 bed, it could be either.  So comparing the numbers from 11/11 to 1/13 on property A are not apples to apples.  

Previously Rentometer would have up to 1000 properties in a 1-3 mile radius in its comparables.  Now it seems they've switched to having 20-50 properties within a smaller 0.5-1 mile radius.  This may be more accurate even with a smaller sample.  The rents for 5 houses in my own neighborhood are more meaningful comps then the rents for 50 houses 2 miles away.

Here's some general background info on rents :    I wrote about how to set your rent in the past.   You should get data from a variety of sources.  HUD Fair Market Rents, Rentometer.com and Craigslist are all valuable sources of rent rate information.    I also pointed out in a previous article how I think that spending the extra time to research rent rates is important.   I'm just tracking Rentometer numbers here for my reference but I wouldn't stop there when doing your own research.


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