Newport News Real Estate Investing & Real Estate Financial Planning™ Podcast · James Orr

Secrets of Rent Comps

·59 min·3 clips

James Orr says rent is set by what a tenant will pay, not by what the spreadsheet says.

1. Newport News Real Estate Investing & Real Estate Financial Planning™ Podcast episode “Secrets of Rent Comps” focuses on how James Orr estimates fair market rent for rental properties. 2. James Orr hosts the episode and says this is a module in the Real Estate Investing Secrets course, where he teaches real estate investors how to set rents. 3. The episode asks what rent a property will actually get in the market and how to price it before a tenant moves out. 4. James Orr says he has already covered marketing to find tenants, screening tenants, managing the property, tenant challenges, and hiring a property manager. 5. He explains that rents change over time and shows a chart of 100 large U.S. cities from 2019 into early 2024. 6. He points out that some cities rose in spring and summer while others fell, especially around the end of 2022 and into 2024. 7. James Orr says rents tend to rise with inflation overall, but they can also decline in some seasons or local markets. 8. He gives a rent range example of about $1,850 to $2,100 instead of treating rent as a single exact number. 9. He says he no longer does his own property management and usually asks his property manager for rent comps using the MLS number, address, and property specifications. 10. He says property managers may estimate low, midpoint, or aggressive rents depending on their business philosophy and tenant-turnover goals. 11. James Orr says the actual rent depends on what a tenant is willing to pay, which is a supply-and-demand result. 12. He compares identical properties listed at $2,000 and explains that a $2,100 ask is hard when 14 similar units are available. 13. He says unique location details such as a corner lot, a street light, a utility box, or an open-space view can change what the market will bear. 14. James Orr says rent comps are hard because current leases may be unusually low or unusually high, so a listed rent is not always a reliable future number. 15. He describes “reality” as properties that were listed and came off market, and “fantasy land” as active listings that may never rent at the asking price. 16. He recommends looking at recent rentals and active competition, ideally about half a dozen similar properties, before choosing a rent range. 17. James Orr says the episode uses a teaching style that moves from charts to examples to a poem by John Godfrey Saxe. 18. He reads “The blind man and the elephants” and uses it to show why one property feature cannot explain the whole rent picture. 19. Investors comparing similar rental properties and setting rents for long-term holds would get the most from this episode. 20. Listeners looking for short-term rental pricing only may skip the long-term comp method details.

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