1. What is Rent Estimation?

Rent estimation calculates the potential rental income for a property by analyzing comparable properties in the same area, adjusting for differences in features and amenities.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Comparable Property Rents — Actual rents of similar properties in the area
• Feature Adjustments — Multiplier accounting for differences in features (0.9-1.1)

Explanation: The calculator averages comparable rents and adjusts for property features to estimate a fair market rent.

3. Importance of Accurate Rent Estimation

Details: Proper rent estimation helps landlords maximize income while remaining competitive, and helps tenants ensure they're paying fair market value.

4. Using the Calculator

Tips: Enter at least 3 comparable property rents from similar properties in your area. Adjust the feature factor based on how your property compares (1.0 = equal, <1.0 = fewer features, >1.0 = more features).

5. Frequently Asked Questions (FAQ)

Q1: How many comparables should I use?
A: Ideally 3-5 comparable properties that are similar in size, location, and features.

Q2: What counts as a comparable property?
A: Properties with similar square footage, bedrooms, bathrooms, amenities, and in the same neighborhood.

Q3: How do I determine the feature adjustment?
A: Adjust down (0.9-0.99) if your property has fewer features, up (1.01-1.1) if it has more features than comparables.

Q4: How often should I re-estimate rent?
A: At least annually, or whenever comparable rents in your area change significantly.

Q5: Should I consider seasonal variations?
A: Yes, rental markets often have seasonal fluctuations. Try to use comparables from the same season.