Have you investigated the first ever Zillow Rent Index? According to Zillow’s chief economist Stan Humphries, “The Inaugural Zillow Rent Index shows us a healthy and growing rental market across the majority of the country, even as home values continue to fall.”
Sounds good, but who is Zillow?
Zillow.com is an online database of publicly accessible real estate information. Zillow has taken scores of public records and used them to create an easy to use online interface. One of Zillow’s strongest characteristics is its integration with satellite map visuals that allow users to easily find and compare properties within geographic spaces.
The information which accompanies a Zillow listing includes the property’s status, as for sale, or rent, an estimate of how much the property is worth and how much the property can be rented for. These estimates are called “Zestimates” and according to the site they are based on proprietary statistics and “machine learning models.”
Zestimates bring us back to the inaugural Zillow Rent Index because the data in the index was created using the same methods used to gather Zillow’s rent Zestimates. Zillow’s Rent Index was preceded by the Zillow Housing Index which relayed similar information regarding home values.
The Smart Approach to Zillow Estimates
While Zillow’s valuation methods are very calculated. The creators of the service themselves only see these estimates as a starting point for determining home or rent value. To determine rent value landlords and property owners are further advised to:
Seek advice from a local property management company that specialize residential management
Take a comparative approach using nearby apartments and homes
Get a first hand experience of the unit and surrounding neighborhood
Red House Property Management offers residential property management services throughout San Diego. For more information on San Diego property management, valuation approaches, and free management quotes send us a message or give Red House a call at (858) 755-3031
For details on the algorithms used and methodology of the Zillow Rent index check out this post on Zillow’s blog.