Author Topic: Do agents tell you the current rents?  (Read 3835 times)

sheepstache

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Do agents tell you the current rents?
« on: November 24, 2014, 05:21:45 PM »
Sorry for a stupid newb question. I'm just researching to see whether some areas I'm considering moving to even have any opportunities for investment, but I'm not knowledgeable enough yet to roll up my sleeves and evaluate fully. So, to learn, I'm looking at sample properties and I'm interested in places that are for sale and are already rentals. SO my question that I'm circuitously getting to is: do realtors typically include this information when you first ask for information? I certainly don't want to waste anybody's time misprepresenting myself if this is given out only to serious buyers.

sammybiker

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Re: Do agents tell you the current rents?
« Reply #1 on: November 24, 2014, 07:11:43 PM »
They may give you their idea of rents in the area but I wouldn't trust their word.  My first agent who was a landlord herself with some 8+ properties in the area, provided numbers that I didn't find accurate (inflated).

I would head on over to biggerpockets, find landlords that are operating in your area of interest and shoot them a PM.  Always take the low end of the estimate.

A good rule of thumb for me is to review craigslist ads and take 10% off.

**All this being said, I tend to rent BELOW market in an effort to increase tenant selection and then keep them in place for a longer period of time.**

sheepstache

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Re: Do agents tell you the current rents?
« Reply #2 on: November 25, 2014, 05:22:34 AM »
Ah, helpful points, thank you.

What I'm wondering about specifically are cases where a rental property is listed for sale and it already has tenants. The listing will say something vague about the rents covering the mortgage but I'm wondering if it's fair to ask straight out what the current tenants are paying.

sammybiker

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Re: Do agents tell you the current rents?
« Reply #3 on: November 25, 2014, 08:08:19 AM »
Absolutely.

Not only should they tell you the current rents, but they should provide you a rent roll with verified payments/checks hitting their account.

Inheriting a tenant is something I try to avoid.

sheepstache

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Re: Do agents tell you the current rents?
« Reply #4 on: November 25, 2014, 09:27:49 AM »
Ah, see, that's where I worry. I don't want to ask for too much information and put them out when I have zero intention of buying these properties and just want the information for my own study.

Inheriting tenants appeals to me but I can see there might be disadvantages too. Perhaps they're a problem tenant the LL hasn't dealt with since they were planning to sell, or the LL has been absentee lately due to circumstances related to selling (trying to retire, illness of a spouse, etc.) so the relationship and attitudes may not be good, or maybe the LL is secretly cutting them a deal to get them to stay until the property is sold, etc.

Megma

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Re: Do agents tell you the current rents?
« Reply #5 on: November 26, 2014, 08:00:49 AM »
I look at Zillow, rent.com and craigslist in the EXACT neighborhood using the map feature and see what units are going for (rent.com will only have complexes usually) in the area of the property. If you are considering several neighborhoods you can do this a little more generally and see what rents are in the town for different size units by just browsing Craigslist ads.

The one time I was looking to buy a property with tenants in place I asked to see copies of both leases (2 units) so I could review the terms also. This was mostly because I wanted to live in one of the units and see how long I needed to keep the tenant but they were readily provided by the seller. Also when I saw the leases and compared them to the property ad, the rents were not the same, so don't trust the ads 100%.

MJB MPLS

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Re: Do agents tell you the current rents?
« Reply #6 on: November 26, 2014, 08:34:56 AM »
Agree with suggestions here. Craigslist is super helpful for price setting on rent. I like to include a nominal rent for pets - 20 bucks/month. I also include a lease buy out option in the lease, to guard against breaking leases early (better cash than court I always say...)

usmarine1975

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Re: Do agents tell you the current rents?
« Reply #7 on: November 26, 2014, 08:44:12 AM »
Get as much info from the Realtor as you can about current tenants.  Get a copy of the lease, Google tenant names, check Facebook, etc...  As far as the rent price Rent's can be raised periodically so it could be a reason the lease doesn't agree with the advertised amount.  But I would do the research using zillow, craigslist, and the other suggestions above.  You need to know what you are actually going to be able to get when you rent it if you rent it.  If the tenants have been in the property a long time you have a good idea of what they are paying.  I would even ask to see a copy of the last couple rent checks or deposit slip or account statement showing the rents going in.  This will also give you an idea of how well the tenants pay their rent.  Get as much info as you can.  If they are unwilling to provide it a reason usually exist.  Realtor's tend to be a bit positive on the rental income of a property.  They are trying to sell the property and will do what they can to get you to buy it.  If you foreclose they make money helping you foreclose as well.  For them it's about the transaction.  Sorry a little bitter towards Realtor's these days.

Research, Research, and Research are going to keep you from regretting a purchase.

arebelspy

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Re: Do agents tell you the current rents?
« Reply #8 on: November 26, 2014, 09:57:40 AM »
Aside from all of the above, which you should absolutely do, get rental comps from the MLS (available more in some places than others) and check rentometer.com
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Megma

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Re: Do agents tell you the current rents?
« Reply #9 on: January 06, 2015, 02:34:45 PM »
rentometer.com looks very helpful!

mathew1659

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Re: Do agents tell you the current rents?
« Reply #10 on: January 07, 2015, 09:55:25 AM »
They may give you their idea of rents in the area but I wouldn't trust their word.  My first agent who was a landlord herself with some 8+ properties in the area, provided numbers that I didn't find accurate (inflated).

I would head on over to biggerpockets, find landlords that are operating in your area of interest and shoot them a PM.  Always take the low end of the estimate.

A good rule of thumb for me is to review craigslist ads and take 10% off.

**All this being said, I tend to rent BELOW market in an effort to increase tenant selection and then keep them in place for a longer period of time.**


I actually found biggerpockets via MMM site. crazy how much they have on rental discussion.

if your looking at multi's the agent should be able to give you rent rolls on each unit along with status' such as month to months, etc.. once you are under contract then you request copies of all leases, vendor agreements, etc.. and really get the detailed info.

GoCubsGo

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Re: Do agents tell you the current rents?
« Reply #11 on: January 07, 2015, 02:20:01 PM »
As a Realtor, I always supply  actual MLS comps for rentals to people that ask. I often provide 2 year rental histories for specific neighborhoods along with city specific market stats that may be of use.  It takes me 5 minutes and you never know when that person may need my help or use me in the future.  Also keep tabs on Craigslist as a barometer of local rental prices.  For listed properties, you can absolutely ask for the exact rental terms of an existing tenant as that is a very important piece.