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How Do You?

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moecraig

Freshman Member
Joined
Jan 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
When required to do a rent schedule on a large(~2800Sq Ft) house and there are no single family rental properties comparable to subject...how can one determine a fair market rent????
 
G

ginadirocco

Guest
My sympathies.

I would try calling local realtors who specialize in rentals.

Good luck.
 

moecraig

Freshman Member
Joined
Jan 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
No help from Realtors...large single family rentals are scarce

I probably have no chose but to use Mult-family...note the lack of comparable rentals & adjust accordingly...UNLESS...Help Me ...
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Go through your local paper for for rent ads, check out the rental magazines in the supermarket, etc. Call property management companies. They might know of some that have rented in the past. Do realtors list rental properties? Did you see any for rent signs in any front yards?
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
moecraig,

Thiose rentals are somewhere. You just have to turn over more rocks. Try the prop manangement companies first, then if your lucky like me, hand pick parcels from GIS that have tax bilkling addresses different than the actual property. I have located lots of houses that way.

Ask around, neighbors, etc. Go outside your market. Call other appraisers, call human resources of companies that transfer people a lot.


good luck, If you find those rentals make sure you make a folder for them. And always in the future keep you ear to the ground for future rentals.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Moe,

I've also run into this, and it does depend on your MLS system and search capabilities.....but you might try to run wildcard searches for the fields that have tenant info or rental info typed into them. I will often use the 'existing rent' field and look for anything >1.

As others have stated, the property management companies will probably be your best source. You'd be amazed how many large homes actually do rent.
 

moecraig

Freshman Member
Joined
Jan 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Thanks for all the input

It's a small town...rural area; there isn't anything available, or Info
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Houses don't usually rent based on their overall size. Sure, it's an amenity, but it isn't the only element that makes it rentable. Houses usually rent based on how many bedrooms they have, and that's the unit of comparison you should be looking for. Overall size is a very secondary issue in the rental market. A 2,800 SqFt house with 4 bedrooms is only going to rent for slightly more than a 1,400 SqFt home with 4 bedrooms, assuming they have comparable locations.

If it's a 4/2 of a 5/3, you're going to find fewer comparables, but they are out there. Same thing as always when you run short of comps; widen your search parameters geographically and chronologically. You'll find something if you go back far enough or go out far enough.


Good luck on this.


George Hatch
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just curious? WHY do you need rental comps for a property that is not normally rented or utilized for investment properties? If there are no comparables, you have to say so. What you can do is estimate an economic rent based on normal rentals in the area. Be aware that as home prices and sizes go up, so does the GRM. For example, in my market the GRM is appx 80-90 for a $90-120K home. As homes get more expensive, the GRM can go up to 150 for a $300K home. There is always "the knowledge and experience of the appraiser". Just cite the best rentals and throw your best estimate at it. After all, until it actually gets rented, there's no real way to estimate the market rental of a unique property.

Roger
 

moecraig

Freshman Member
Joined
Jan 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Why do they need a rent schedule;
My understanding from learning the mortgage end; if the house being finance is investment property and if the owner's credit score is not that great, then most oft than not, the lender will require a rent schedule & operating income---that's what i have been told, anyway

This particular home is being used as a boarding facility---yes, illegal use, which I will note; since it is zoned 'single family use';

What are those winning lottery numbers again?
 
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