Identifying Rent

[nepoez]

Hi Investors,

It`s me again with yet another newbie question.

So I`ve gotten to the state where I am now looking for properties in Edmonton. However I am having trouble with one factor on my analysis sheet. Rent.

I know I can look on rentfaster, and rentedmonton, etc.. even craig`s list, finding out a range. I`m seeing 3 bedroom apartments and town houses around the $1300/m range. But there`s a big gap ranging from $850/m to $1600/m for 3 bedrooms in the same area of same square footages. So I can`t just pick the middle ground of $1300 and think I`ll get that rent, because two doors left is $1600, and 2 doors right is $850(just an example) for similar properties. I don`t live in Edmonton so I can`t really see why the price difference.

I`m basically stuck at this.. I can`t move forward because my analysis sheet is incomplete!

Any advise wil be much apreciated yet again!

Thanks!

 

[ccameron]

QUOTE (nepoez @ May 14 2008, 09:25 PM) Hi Investors,

It`s me again with yet another newbie question.

So I`ve gotten to the state where I am now looking for properties in Edmonton. However I am having trouble with one factor on my analysis sheet. Rent.

I know I can look on rentfaster, and rentedmonton, etc.. even craig`s list, finding out a range. I`m seeing 3 bedroom apartments and town houses around the $1300/m range. But there`s a big gap ranging from $850/m to $1600/m for 3 bedrooms in the same area of same square footages. So I can`t just pick the middle ground of $1300 and think I`ll get that rent, because two doors left is $1600, and 2 doors right is $850(just an example) for similar properties. I don`t live in Edmonton so I can`t really see why the price difference.

I`m basically stuck at this.. I can`t move forward because my analysis sheet is incomplete!

Any advise wil be much apreciated yet again!

Thanks!
Could it be that the unit 2 doors to the left ($1600.00) may be all inclusive? Or that there may be a rooming house type situation where bdrms are rented monthly? The other factor may be the overall condition of the interior and the added bonuses such as new appliances, posh decorating, etc...you get the idea. I would base my rent for a unit on the above! Aim high, you will be suprised at the results! Have a great day...Chris

 

[ChrisDavies]

I`ve been ballparking at 1100 or 1200 for a 2 bedroom and 1450-1700 for a three bedroom. Depends on the area and condition, but it gives you a place to start.

Cheers,

Chris

 

[SamEfford]

Something I like to do if there is a large spread on comparables is to call and get more information about the listing. Like Chris Cameron said, there may be added bonuses that would cause the rent to be higher. This can help focus your marketing by stressing how your property is better (worth more) to a tenant.

 

[nepoez]

Thanks again for the helpful feedback.

This reminds me that this is a business. Calling other `competitors` and finding out their product is probably a good way of bench marking.

 

[Thomas Beyer]

how much is a 4 seater car ?

between $1200 (old, used) and $123,00 (high end Mercedes) .. both have 4 wheels and drive from A to B .. some in comfort .. some less so ..

similar with rents: a range of 30-50% is normal .. so you have to be narrower: i.e. what are you comparing ? 3BR with a yard and a view of a green belt in top condition ? or a 45 year old building with no upgrades and a basement suite 3BR with view of car exhausts in the parking lot ?

$1250 for a 3BR sounds "about right" .. +/- $450 ...

Assume 3BR in average walk up apartment building = $1250

on the plus side:
upgraded = + $100 to $300
view = + $50 to $200
balcony = +$20 to $100
2nd or 3rd bathroom = +$20 to $200
covered parking = +$50 or so
elevator = + $50 to $250 (depending on floor)
concrete building = +$35 to $150

on the downside:
basement = -$50 - $200
nice neighborhood = +$100 - $300 (depends what one defines as "nice")
crummy neighborhood = - $100 - $450 (depends what one defines as "crummy")
leaky toilet / faucet / drain = -$20 to -$200
missing drywall / with holes = -$50 to -$450

 

[ChrisDavies]

QUOTE (thomasbeyer2000 @ May 15 2008, 04:57 PM) on the plus side:
upgraded = + $100 to $300
view = + $50 to $200
balcony = +$20 to $100
2nd or 3rd bathroom = +$20 to $200
covered parking = +$50 or so
elevator = + $50 to $250 (depending on floor)
concrete building = +$35 to $150

on the downside:
basement = -$50 - $200
nice neighborhood = +$100 - $300 (depends what one defines as "nice")
crummy neighborhood = - $100 - $450 (depends what one defines as "crummy")
leaky toilet / faucet / drain = -$20 to -$200
missing drywall / with holes = -$50 to -$450


That`s a great list! I agree with you in general, and one big factor in getting `top rent` is how much time and effort you`re willing to put in.