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Raygun, Other/Just Looking in Hollywood, Los Angeles...

what determines the market price of a lease for a house/condo here in Los Angeles?

Asked by Raygun, Hollywood, Los Angeles, CA Thu Aug 23, 2007

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The simple answer is that main factor that determines market price is supply and demand. You can determine what that price is by looking at what someone would pay for a comparable lease. In comparing, look primarily at location and type of property, then bedrooms, bathrooms, square footage, amenities and condition of the property. Then look at the lease terms. Often landlords will demand higher rents for shorter term leases and vice-versa.

If you are looking to determine the market price of a property you have for lease, or you are looking to lease a place yourself, you should do a bit of legwork or hire someone to do it for you. Look at several places near the property to get an idea of rents, look online at sources such as latimes.com or westsiderentals.com (westside rentals is free for landlords and has an online tool to help "comp" your property, or hire an agent to help. You also might want to check out rentometer.com, which is fun and informative, although it doesn't quite have the zillion points of data to really nail down a price.
Web Reference: http://www.rentometer.com
1 vote Thank Flag Link Thu Aug 23, 2007
Comparables are usually used just as with home sales.
0 votes Thank Flag Link Tue Jun 3, 2008
The market will dictate the price.
0 votes Thank Flag Link Mon Oct 15, 2007
Willing landlords and willing renters.....it takes two to tango. Some people might say supply and demand, but even if the supply is there it will only rent if the tenant is willing to pay the price.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Aug 24, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Real estate is valued by what other people (known as the market) are willing to pay in order to use of the property. This is the market rent value of the property. While you might not be able to determine exactly to the dollar just what this value is, you'll almost always be able to determine a range of rents that properties similar to your subject property are renting for.

This is important because once you start looking for a tenant/buyer, the clock is ticking. Asking too much rent causes you to waste your time showing the property and your money paying for ads. In addition you'll want to snare that perfect tenant/buyer by having your property rents at the right level beginning with your first showing.

Fill your properties more quickly

A rent survey is an analysis of what properties similar to yours are renting for. A good rent survey allows you to fill your properties more quickly since you won't be asking for too much rent. If you've agreed to pay too high of a monthly payment to the seller, the rent survey gives you the information you need to go back and renegotiate the payment with the seller.

The easiest and most direct way to do a rent survey is to simply walk down the street and start knocking on doors. This gives you a chance to look closely at the neighborhood as you walk through it. Ask the people you meet the following question: I was thinking of renting in this neighborhood. Do you by chance know how much other people are paying in rent for a ___-bedroom house (or condo/townhouse) around here?

Notice that you ask them if they know what other people are paying in rent. We've found this is a less intrusive question than asking them what they are paying in rent.
0 votes Thank Flag Link Thu Aug 23, 2007
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