What is Market Rent, and When is a Comp not a Comp?

Market rent is the amount of rent expected for use of a property based on comparables or “comps.” But what does that mean in practice for apartment community managers, and most importantly, how can managers make sure they are working with accurate information, so they don’t miss the mark on pricing rents competitively while still staying reasonable in their expectations? Researching or “shopping comps” is simply data collection with the goal of knowing where to price units. Every professional manager understands that their revenue management is data driven. So, to maximize revenue we need to know the baseline and determine ways to increase it, if possible. This can get especially challenging when supply is low or you’re in a “tight” rental market. In that case, a deep dive into comps is essential so that money is not left on the table.