As you consider diving into the world of house hacking, getting a clear understanding of the numbers on the deal is critically important. One of the most important numbers is the amount a potential property can command in rent. Without a solid estimate of that number, you may be flying blind into your first house hacking experience.
Not sure how to determine the expected rental price of the property? Luckily, you can take advantage of Rentometer to help you through this tricky process.
In this Rentometer review, we will take a closer look at the tool. You can decide for yourself whether or not you want to work with this helpful tool. Plus, an opportunity to run the numbers on one property for free with the help of FI by REI.
What is Rentometer?
Rentometer is an online tool that helps users estimate the rent prices of a particular neighborhood. The company claims that it offers the fastest way to determine the ‘going rents’ in any neighborhood in the U.S.
When you work with Rentometer, you can expect to find out the market rate for a particular rental within a few minutes. With the Pro version, you’ll gain access to a wide range of information and tools to help you evaluate the potential rental value of a property.
How Rentometer works
So, how does Rentometer work?
According to their website, Rentometer uses proprietary technology to crunch the numbers on a particular rental property in seconds. The goal is to determine an estimated rental cost for properties in your chosen area.
Where does Rentometer get its data?
The results that Rentometer creates are only as good as the data it has access to. With that, the question of where Rentometer gets its data must be asked.
Unfortunately, Rentometer keeps its data sources confidential. However, the site claims that Rentometer “collects rental listing data and rent data from a variety of sources including bulk syndicated data, our proprietary rental data survey, and user-generated input and listings of rental data.”
Additionally, Rentometer claims that new data is added to their records every day. But the site does point out the fact that the tool often has more data in urban areas due to higher rental activity. Although suburban and rural areas often have less data available due to lower rental activity, the tool still pulls in data from a variety of available sources.
Since the data behind these numbers is a critical part of the picture, it is disappointing that Rentometer doesn’t provide more information on their sources. However, it is clear that the tool is making every effort to draw in as much useful data as possible.
How accurate is Rentometer?
If you want to use Rentometer to understand how much a property can command in rent, the hope is that the tool would be as accurate as possible.
When you work with Rentometer’s free version, you’ll only enter three details about the property. These three details are the property address, the number of bedrooms, and the number of bathrooms. With that small amount of information, Rentometer runs a search to find the rental prices for comparable properties in the area. However, the tool doesn’t have too much information to go off of. You may find that there are other factors that could boost the rental value of a property.
With the minimal amount of information in mind, Rentometer may be too simplified to be 100% accurate. However, that doesn’t mean that it is not a valuable tool to work with. Instead of treating the numbers in Rentometer as a final stop, consider using the tool as a great place to start.
Once you look at the report that Rentometer has to offer, look at the other property details to make adjustments to this initial estimate as needed.
How to use Rentometer
Ready to use Rentometer? Here’s how to take advantage of this tool.
In order to get started with Rentometer, you can run a free search that will return a simple report. You’ll enter the property address, the number of bedrooms, and the number of bathrooms.
From there, Rentometer will return a simplified report that shows the average rental prices in the area, the median, and some of the outliers. Here’s a quick look at what that would look like below.
With this limited amount of information, you could use this rental report summary as a starting point. But if you want to take things to the next level, you could run a Rentometer Pro report.
With the pro report, you will gain access to more information. Typically, the more information you have about a particular rental property, the better off you will be. So, running a Pro report could be worth it.
If you want to give the free report a try, then definitely take advantage of our access offer for one free Rentometer Pro report. Already have Rentometer, and want to try a FREE Pro Report? Give it a try here:
How to access Rentometer
Ready to use Rentometer as a tool to help you explore your rental property options? Here’s how to gain access to these useful reports.
Rentometer free search limit
As a user, you can work with the Rentometer free version on their site without limits. However, the reports offered through the free version are somewhat limited.
If you want to access the Pro Reports without paying for a membership, we have a helpful offer for you. You can gain access to one free Pro Report with FI by REI. Once you run the Pro Report, you might be ready to upgrade for all of the extra information included.
Rentometer Pro provides a suite of features that are unavailable in the free version. With Rentometer Pro, you will be able to dig into the details of your property. Instead of entering three pieces of information, you can dial into the particular amenities that your property has to offer. The more information you can provide, the more accurate your rental report will be.
Not only will you be able to add more information about your property, but you also narrow your geographic competition area. You can work with a zip code or dial into a particular neighborhood to get a clear understanding of the competition nearby.
Additionally, you can run batch reports for up to 100 properties at a time. With that, you can more easily comparable potential rental opportunities. All in all, the Pro features offered by Rentometer are extremely worthwhile.
Typically, the cost to access Rentometer Pro is $199. This purchase will give you access to Rentometer’s tools for one year. Throughout the year, Rentometer runs specials. For example, throughout July 2021, new users could buy Rentometer Pro for just $99.
Luckily, you don’t have to wait for a special to come around. You can run a free Rentometer Pro report through our FI by REI link. That’s right! You can gain access to a free Rentometer Pro report without paying a dime.
How useful is Rentometer?
Real estate investing is both an art and a science. The balance of the two creates a successful real estate portfolio.
Rentometer is a great tool to help out with the science side of the equation. Rentometer gives us estimates and ranges by using data science to create those ranges.
In a free report, you get great estimates to help in the early stages of investigating a property. With this baseline information, you can confidently put together an offer on a particular property. However, putting in an offer on a property is only the first step of many. Once you are under contract on a property, or you are getting ready to market a property for rent, you as the real estate investor should look at the raw data, to make sure it makes sense.
You’ll need to get access to the raw data, which will give you the ability to discern for yourself what a property should be able to command in rent. But in order to get access to that data, you’ll need the pro report.
Personally, I find Rentometer to be an extremely useful tool. Since 2016, I’ve been a paying customer that regularly uses Rentometer as one of the many tools on my path to success. If you are just getting started in real estate investing, then one free Pro report may be fine for now. But if you start getting serious about an offer, then you should plan to upgrade to the pro account at some point.
The bottom line
Rentometer is a useful tool that could help you take your real estate investing journey to the next level. However, purchasing this tool alone won’t provide more than reports to help you price a rental property.
If you are looking for more hands-on guidance surrounding real estate investing, then you should consider taking our Profitable Property Blueprint masterclass. Through this course, you will learn about a streamlined Deal Funnel Analysis. With a firm grasp of this information, you’ll gain the confidence you need to take action on building the real estate portfolio of your dreams.
Ready to take your real estate investing knowledge to the next level? Don’t wait to sign up for our Profitable Property Blueprint masterclass.
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