Are you wondering what the best rental comp software for 2021 is?
When it comes to rental property investing, one of the biggest challenges investors face is determining how much to charge for rent. Whether you are investing in a traditional rental or an Airbnb property, how much you charge for rent will hugely impact your return on investment.
Unfortunately, there’s no straightforward answer to what you should charge for rent. The most effective way to determine the right price to charge is to conduct a thorough rental market analysis. This involves determining how much other similar rental properties in the neighborhood are renting for. This is also known as finding rental comps. In this day and age, if you want to have a profitable rental property, you need to know how to find rental comps using reliable rental comp software.
In this article, we’ll show you how to find traditional and Airbnb comps quickly and efficiently using the best rental comp software in the market. But before we talk about this rental comp software, let’s first understand the importance of using rental comps to set rental rate.
Why Use Rental Comps to Set Your Rental Rate?
Determining the right rental rate can be a bit challenging. A higher rental rate doesn’t always translate into higher rental income. If you set a rental rate that is too high, you may struggle to get any tenant and will lose out on your monthly rental income. On the other hand, if your rental rate is too low, you may attract more renters but won’t be able to cover your mortgage payments and other recurring costs. Moreover, if your rental rate is too low compared to the average in the area, you might not attract quality tenants.
To set the right rental value, you need to find a sweet spot where the rent price is neither too high nor too low. You should set a rental rate that will not only maximize profits but will also be competitive enough to attract good tenants and minimize your vacancy rate. That’s where comparative market analysis comes into place. If you want to find a rent estimate that will optimize your rental income, you need to find the fair market rent using rental comps.
Related: How to Find Multifamily Comps: 4 Ways
Best Software for Finding Rental Comps
While it’s easy to see the importance of using rental comparables to set the right rental rate, finding rental comps can be a bit more complex and time-consuming if you are using traditional methods. It involves looking at a number of property features such as location, property type, number of bedrooms, number of bathrooms, square footage, and much more. To get an accurate rent estimate, the comps should be very similar to the subject property.
While it’s possible to search for rental comps manually by examining rental listings and doing rental comparisons on a spreadsheet, it would take you days or even weeks to do so. Moreover, you may make mistakes in your calculations that will compromise the accuracy of your rental comp analysis.
Luckily, thanks to the advancement of real estate technology, in 2021 there are several tools for rental comps that can help simplify your rental comp analysis. However, they are not all built the same. If you want the best rental comp software for a quick and accurate comparative market analysis, consider using Mashvisor.
With Mashvisor’s rental property calculator, you can get a comprehensive list of rental comps (traditional and Airbnb) for any listing in the US housing market in a matter of minutes. The tool provides this by using industry-leading real estate data and predictive analytics.
Related: What Is Mashvisor? What Can It Do for Real Estate Investors?
With our interactive and user-friendly rental comp software, you will save a lot of your time and effort. Even with little or no real estate experience, you can access and analyze traditional and Airbnb comps for MLS listings on the platform or any off-market property whose address you enter. This is how to use our rental comp software:
On the Rental Comps & Insights tab of the investment property analysis page, you’ll see a list of traditional and Airbnb rental comps. All these comps come from reliable sources such as the MLS, Zillow, and Airbnb (for Airbnb comps). Here, you’ll see how similar each rental comp is to the one you are evaluating (expressed as a percentage), the property address, and what distance it is from the subject property.
Finally, you’ll be able to get the monthly rental rate of the property, which is the main goal of your rental comp analysis. For Airbnb comps, you will be able to access the Airbnb daily rate, the Airbnb monthly rental income, and the Airbnb occupancy rate. You can also see how the number of ratings and reviews has impacted profitability. Some landlords or Airbnb hosts may not be willing to share all this data with you. With Mashvisor, you don’t have to worry about that.
Related: Airbnb Rental Data: Why Investors Need It Now More Than Ever
Apart from seeing comparables with all their data, our rental comp software allows you to download the data as a CSV file. This makes it easy for you to share the data with your real estate network and get more insights from them.
What More Can You Get from Mashvisor?
Unlike many real estate investment software, Mashvisor is not limited to providing rental comps data only. With this rental comp software, you can access much more useful information that will help you make better investment decisions in 2021.
For any investment property listed on the platform or any off-market property in the US whose address you enter, you can get a comprehensive investment property analysis. This includes important rental data such as:
- Property price
- Rental costs (one-time startup costs and recurring monthly expenses)
- Rental income
- Cash flow
- Occupancy rate
- Cap rate
- Cash on cash return
- Optimal rental strategy
The Bottom Line
If you want to succeed as a landlord or Airbnb host in the local rental market, setting the right rental price is crucial. The right rental rate will optimize your traditional or Airbnb income and also ensure a high occupancy rate. To achieve this, you need to know how to find rental comps quickly and efficiently. Fortunately, with Mashvisor’s rental comp software, anyone can run an accurate rental comp analysis in a matter of minutes. Therefore, in 2021 you no longer need to rely on traditional methods of finding comps, which can be time-consuming and inaccurate.
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