RSS FeedTaking the Guesswork Out of Renting in Penn Quarter
When I moved to Penn Quarter two years ago, I chose the neighborhood because it was clean, close to work and seemed like a safe place to reside. In fact, the only thing about the neighborhood that frightened me was the condo prices.
After resigning myself to the fact that purchasing a $300k+ condo was not in my future, I made the decision to rent. But how did I know that I was getting a good deal?
I realize that in Penn Quarter “deal” is a relative term, but every renter wants to know whether they’re paying a fair price for their apartment. So, last weekend, when a friend announced that she was looking for a place in PQ, I introduced her to the magical awesomeness that is Rentometer.
Ever wondered whether a Craigslist posting is advertising a killer deal or a wallet killing farce? Have an apartment that you need to rent out but you’re not sure what the market will bear? Check Rentometer.
Now, the website does have it’s drawbacks. It will only give you the price of a) apartments in professionally managed buildings or b) apartments that have been added to the rolls by visitors (each time someone searches, their information is automatically added). But the median averages seem fairly accurate.
According to Rentometer’s median averages, a Studio apartment in the area will cost an average of $1500 per month. A one bedroom will run you about $2214. And those elusive two bedroom apartments will cost $2950.
It may not be an exact science, but Rentometer takes some of the guesswork about renting in Penn Quarter.
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Comments
It seems those numbers reflect the prices asked by the owner or management company rather than the amount actually paid. For example, one bedrooms in PQ can often be found for much less than $2200. Many of the buildings in the area have a number of units unoccupied because they either are: (1) slow to sell; or (2) slow to rent — both options a likely result of owners charging artifically high prices because they want to minimize the loss they take on their property.
Assuming you have a one bedroom, if those numbers are accurate, you’d be better off with one of those $300k condos. Even with taxes/assessments, you’d still be paying less than the median rent of a one bedroom.
$300k one-bedrooms are a thing of the past in Penn Quarter. Try more like $400K for 800 or more square feet in a new buidling.
I don’t think you can get a one-bedroom for $300K in Penn Quarter any more. The price seems to be hovering around $400K.
studios are centered right around $300K so you can buy an apartment in the PQ for that number.
I’d be interested in Ben’s numbers and assumptions to back up his claim.
Not everyone is here on a long term basis. Although it may be ideal to buy, if you need to relocate in 1 to 3 years, it is not pratical to do so with the current market
PQ is seems to be right on target with the rental prices.
We have been looking for about a year, and haven’t found a suitable 1 bedroom to purchase for under $400,000, as already stated by PQ president and anon.
It is just the price we pay for living with conveniences sans the walk to grocery store.
While the site is useful for getting a general sense, DC is peculiar in that it really varies block by block. then you have to take into account the type of building, condition, amenities…too complicated for just an online form but a good starting point. I would argue its also better for the big buildings, not the small individual places, bsmt apts…
It’s definitely tough to calculate for smaller buildings without amenities. I would never pay this much for a bldg. that didn’t have so much included.
And while you can buy a studio for 300k, once you add in condo fees and taxes, I certainly pay less to rent than to buy. Though that might not be true of a one bedroom that seems to cost about as much to rent as to buy.
I own a 2 BR condo in PQ and between my mortgage, taxes & insurance, and condo fees I am right at $3,000, in – line with the average asking rent for a 2 BR in this sub-market. The only difference between the 2 is the 20% you have to come up with up-front which in this market can be very sizeable.
I would also add the DC Deed and Recordation (a.k.a. Robbery) Tax to the material upfront expenses. However, while renting may still be a bit cheaper for some types of units, renters can’t avail themselves of any of the tax benefits of home ownership, which are especially key in high-income brackets.
David makes a good point and he didn’t even factor in the tax advantage. Plus, every month he’s building equity. If you’re planning on being here for at least three years buying is probably the best route, if you can afford it. By that I mean you can actually make a down payment (100% financing is quickly becoming a thing of the past) and have a very good credit rating. Lots of people can afford the growing rents in the PQ but don’t have the resources to buy.
Hi PQgirl,
Thank you for writing about the Rentometer.
We just wanted to let you know where our data comes from to give you more confidence in our service. We actually do not use “user entered data” in the calculations nor comp results. The data that we compare comes from active live rental listings (from small landlords as well as large companies). We search for active viable listings daily. We also accept listings and data directly from landlords and property managers. As owners post their listings directly to the Rentometer, their map points become links to full detailed listings, to allow renters to compare the amenities that are important to them. These are increasing in number, very quickly.
Currently the Rentometer is used by both Renters and Owners to check current market rates in their area.
We hope you will stay tuned! We have more enhancements planned for the Rentometer.
Thanks again for reviewing our site. We enjoyed the comments from your readers as well. As always, we welcome your questions and input.
Best regards,
Allison
Allison Atsiknoudas
CEO
Investment Instruments Corporation
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I tried out the site. I dislike that it requires you to input some rent data before you can view typical rents for an area. This invites the entry of fictitious data.
On the mash-up an improvement would be to give you the address of the nearby rentals as well as how many entries are being used to generate the typical rent.
Finally – professional management companies are all well aware of prices in the area. A leasing agent once told me that there is discussion among apartment companies on setting prices. Price fixing? Perhaps.