Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake and Gino.

And in this how-to video, we're going to be discussing rental comps.

It's such an important metric to be able to go out and understand how, when you hear a broker say,

and I've never heard a broker, not say you can raise rents. Well, can you raise rents? That's the

important question. And how do you analyze a market and how do you perform a rental comp? There's

four things that you need to be looking at. So if you want to understand how to perform a rental

comp and make sure the broker is actually not lying or is not

inflating the truth. These are the four factors. The first one is age. If you are looking at a

1970s property and you're trying to do a rental comp, please find properties that are plus or

minus 10 years of that property. If it's a 1950s property, your comping or 1980s property,

that's within reason. But if you've got a 1970s property with a ton of CAPEX and a broker

shows you a 2003 build, not really a comp. I really wouldn't look at that as a comparable.

You can try to compare it, but you're

going to say to yourself that 1970s is going to rent for a lot less or less than the 2000s

build. So the first one is the age. The next one is the size. Now, let's say you have a 1980s

build property. And you're looking at a 1990s build property. It's within plus or minus 10 years,

but your 1980s property is 17 units. Your 1990s property is 300 and 50 units. Is that a good

comparable? I would say it is not a good, good comparable. It needs to be plus or minus 20%. So if you're looking at a 50

unit property, you want to look at something between 30 and maybe 70 units within 20%. It's really

important that you understand that because size is important in certain areas of the market.

Let me discuss what I mean by that. There will be institutions and

groups that have the capital, especially in the last several years, that will pay a lot more

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