How to Find Rental Property Comps in 2022
Abstract
What Should a Rental Property Comp Include? In addition to location, square footage, and building style, what other important features should rental property comps include? First of all, property rent should be included in rental comps. Determine the Right Rental Property Values There are different approaches to valuing rental property. Doing rental property comps is encouraged when you want to make home improvements or upgrades to your rental property. Compile a List of 5 or More Properties To find rental comps, start by compiling a list of at least five comparable properties. GRM = Property Value / Gross Rental Income For example, if a $150,000 property generates a gross rental income of $14,400 in a year, the GRM will be: $150,000 / $14,400 = 10.4 When comparing properties, the property with lower GRM is the less profitable one. The last step in doing rental comps is to rank the numbers from your subject property against the numbers of other rental properties. Our data accuracy is unparalleled because we draw from the most reliable sources: Airbnb, Zillow, and other MLS. Use Mashvisor to Find Rental Property Comps Within Minutes When investing in a rental property, the first step is to find rental comps.
