How to Set Rents with Scott Abbey
Clint Coons

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How do you determine rents for properties you’re thinking about buying? As an investor, are you going to get a return on your investment? If you don’t, then you could get behind every month.

Clint Coons of Anderson Business Advisors talks to Scott Abbey of RentFax, who will tell you how to determine rents for your properties. So, when you make investment decisions, you’ll have a range to use to budget wisely.

Highlights/Topics:

  • Scott pulls data on properties from the Census Bureau to track indicators of positive vs. negative experiences and determine if he could sustain an income stream
  • Scott makes sure to understand the risks involved when taking on a property to establish a reasonable expectation from a client’s perspective
  • Quality of the location has a direct outcome regarding your income stream and understanding what rents need to be
  • Scott looks at a certain area to determine the rent range; 77,000 census tracts are available to identify the neighborhood’s risk and rent range
  • If your subject and comps are in the same demographic area, it’s likely that those comps will be more powerful, desirable, and accurate than those outside the demographic area
  • Process involves including the square footage and number of bathrooms of subject and comparing them to comps; RentFax adjusts rents to compensate for differences
  • Start at the high end of the predictable range, and then market through it over a few weeks by lowering rent, until you get worthwhile applications
  • Condition of Subject: Some investors barely make changes/fixes, but others modernize and make it nice; take your subject to a higher level to charge more rent
  • Season of Subject: Some seasons generate less traffic; market rent prices based on number of clients looking for a place to rent and the season
  • Use RISC Index to identify the risk of your property; rent affordability becomes a major indicator or cause of failure to sustain a cash flow stream
  • RentFax is helpful for you to buy outside your market and to find comfortable risk tolerances; it quickly offers critical data, appreciation rates, and demographic information
  • Most people who self-manage tend to be below market; but if they fall far behind the market, then they’re not capturing the full benefits from their investment
  • Past three years has seen a large growth in rents – a 20% gain; recently, rents have started to slow down
  • Buying properties in high-risk areas with low-risk tolerances is an investment disaster; RentFax matches area risk, subject location, and client’s expectations/tolerances

Resources

RentFax (Use COONS15 code to get 15% off)

Census Bureau

RISC Index

RETS

Clint Coons

Anderson Advisors

Tax and Asset Protection Event

Full Episode Transcript:

Clint: Hi everyone, it’s Clint Coons here at Anderson Business Advisors and in this episode, we’re going to be discussing how you determine your rents for those properties you’re considering buying. As an avid real estate investor, I have over 100 properties across United States and many of these are single family homes.

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How to Set Rents with Scott Abbey
Clint Coons

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00:00 /
 
1X

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