Definition
Rental comps are comparable properties establishing realistic market rents. Analyzing 3-5 comps reveals competitive pricing.
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Find my pathAbout this term
Rental comps include property features (size, condition, location, amenities) and rental rates. Analyzing 3-5 comparable properties establishes realistic market rents. Rental comps vary by unit type and location within markets. Lenders use rental comps to verify income claims on rental property loans.
Pro Tip
Regularly analyze rental comps. Under-market rents leave money on the table.
Example
Analyzing 4 comparable 2-bedroom apartments shows market rents of $1,150-$1,300; current $1,100 rent appears below market