Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

I am interested in investing in property. How do I go about figuring out the rent-ability of any given property? As in how do I figure out how much rent a property could get potentially on average per month for example?

For example, for any given area, how do I figure out the average rental rate.

This question is regarding apartments/houses/homes etc. Not businesses.

share|improve this question
2  
Do you mean an apartment or home? VS a business? –  JoeTaxpayer Aug 14 at 15:15

3 Answers 3

up vote 8 down vote accepted

This may not be entirely scientific, but as a landlord my usual approach is just to do a search for rental properties on Craigslist for comparable homes in the neighborhood. There are all kinds of formulas professional property managers use, but in the end these listings are the ones you are going to be competing with for tenants.

Also, it isn't super accurate, but online services like Zillow.com can give you some numbers for rental houses that include those that aren't currently advertising.

share|improve this answer
    
In the US, I'd use realtor.com before craigslist or zillow.com, but I definitely think this is where to start. You're basically doing your own personal comparative market analysis (CMA) that a realtor would do if you hired them. Getting a realtor's opinion wouldn't hurt either. –  Jared Aug 15 at 14:25

Check out the property websites to get an idea of how much, the property in question, could yield as rent. Most give a range and you can get a good idea of it.

Just one example from zoopla.

Likewise you can refer mouseprice or rightmove and get yourself an idea. Property websites do a lot of data crunching to do an update, but their figure is only a guide.

share|improve this answer

Zoopla may not always accurately reflect the market price. Your best bet is to get a quote for local registered) letting agents. That way you know you are close to the real market value.

Also, these quotes may come into handy if you have a mortgage on the property. Since most banks will require you to provide proof of rent figures you are projecting by sending in official quotes.

Hope this helps..

share|improve this answer
1  
Agreed. Letting agents have a vested interest in letting out properties at the maximum price that the market will support. Too high, and no-one will rent it; too low, and they get less commission (and you get less rent). Also, ask a few lettings agents; hopefully you will get similar numbers from them. –  Steve Melnikoff Aug 18 at 23:38

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.