I own a SFH rental in Dallas-FortWorth (Frisco to be exact). We plan on increasing rent, but don’t know how to gage what a reasonable rent increase should be. When I look on Zillow the house is renting for $200-$500 less than comparable and even older looking homes in the area/neighborhood. What other tools do landlords use to calculate rent increases?

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I’ll take an average of the all the rental listing in the neighborhood and then adjust slightly based on how I evaluate the quality of my unit vs the other listing.

I have also used the free trail on rentometer to see if I’m in the right ball park for my rent.

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Also important to keep in mind if you have good tenants! If you do, I’d def come in a little lower than market value to incentivize them to stay if they’re great renters!

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I've tried the bidder approach and it worked. I printed out the comps in the area and outline current drivers in the market: insurance and taxes - 40 - 70%+. Then asked them to do their own research too and make an offer. You will be surprised where they land. If they don't make an offer in good faith, I counter with what I need to make it work for me. Check on YouTube for the bidder approach, but I'll be selective with which resident to apply to though.

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What is going to be the justification for raising rent?

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Costs are increasing, insurance…property tax. The justification is getting rent closer to market levels in that area, without creating a big jump.

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I’m a Mortgage Lender at Town Square Mortgage. Reach out to a Realtor and have them run a Rental Study report for like properties in your area. It will be more accurate than Zillow.

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