Comps for a for-rent townhome complex
I’m trying to put together comps for a for-rent townhome complex (no units pre-sold) being constructed that the developer plans to hold for passive income. Would it be better to use apartment complexes as comps since it will be operated like one or nearby townhomes for rent?
[{"id": "f7cqd5c", "text": "I would do both separately and show what you can in both instances.  Lay out $/sf and any amenities that come along with each complex. Vacancy rates are good to know from the apartment complexes as well. Most management companies will give you that information if you call and are friendly.", "replies": [], "depth": 1}, {"id": "f7cz1dx", "text": "I\u2019ve never seen this game plan work out in any way, shape, or form as originally intended so my advice would be to err on the conservative side.", "replies": [], "depth": 1}, {"id": "f7d5229", "text": "I was a commercial appraiser years ago and appraised a few apartment complexes. I think rent comps would depend on the configuration of the townhomes and how many there will be in the development. If the townhomes have individual garages, that would be a plus, they might rent for more per square foot or per bedroom than an apartment.\n\nIf the townhouse development is pretty small, say 20 or 30 units, rental data from large apartment complexes might not be comparable.  In that case, the rental rates charged by individual owners renting out townhomes might be best.\n\nOne more thought, depending on the configuration of the townhomes, rental rates of condos in similar sized nearby developments might provide comps.\n\nYou may already know this, but some developers are starting to build single-family communities for rentals. My husband develops smaller (below typical institutional size) apartment complexes and recently considered doing a single family or single story villa style rental community recently because entitled apartment sites (especially those that aren't crazy expensive) are getting hard to find.", "replies": [], "depth": 1}, {"id": "f7dcvza", "text": "DM me happy to offer some assistance.  I'm a MF broker.", "replies": [], "depth": 1}]