How to determine market value for a rental property?

Rentals Listing
1

Hey everyone, I’m looking to rent out my property but I’m not sure how to figure out the market value. Any tips on where I should look or what resources I can use to determine a fair rental price?

3 Likes
2

There are several ways to determine the market value for a rental:

  1. Check online listing platforms like Kijiji, Facebook Marketplace, and Padmapper for similar properties in your area.

  2. Use CMHC (Canada Mortgage and Housing Corporation) data for average rental prices in your city.

  3. Look at HouseSigma for recent rental transactions in your neighborhood.

  4. Consider the specific features of your property (parking, amenities, etc.) and adjust the price accordingly.

Remember, it’s not an exact science, but these resources should give you a good starting point.

7 Likes
3

Is it really that complicated? Can’t I just look at what my neighbors are charging and go with that?

4

While looking at your neighbors’ prices can be a good starting point, it’s not always the best approach. Your property might have different features or be in better/worse condition. It’s important to consider multiple factors to set a fair and competitive price.

5

I’ve had success using Rentals.ca to compare prices in my area. They have a pretty comprehensive listing of rentals across Canada.

2 Likes
6

Thanks for all the suggestions! I’ll definitely check out HouseSigma and Padmapper. Has anyone used a professional appraiser for rental valuation?

7

Professional appraisers can be helpful, especially for unique properties or if you’re new to being a landlord. However, for most standard rentals, you can usually get a good estimate using the online resources mentioned earlier. If you do decide to use an appraiser, make sure they have experience with rental properties specifically.

8

Don’t forget to factor in your expenses too! Property taxes, maintenance costs, and potential vacancy periods should all be considered when setting your rent.

4 Likes
9

That’s a great point about expenses. While market value is important, you also need to ensure that your rental income covers your costs and provides a reasonable return on your investment. Just be careful not to price yourself out of the market by trying to cover unusually high expenses.

10

This is all really helpful info. I’m going to start by checking out the online resources and then maybe consult with a local real estate agent who knows the rental market. Thanks everyone!

2 Likes