If you are the owner of a single-family rental property, you are already aware of how crucial it is to keep ahead of the curve in the current market. Regularly carrying out a rental market analysis is one of the best strategies to achieve this. Whether you are planning to purchase a property or manage one that you currently own, a rental market analysis might be helpful.
An accurate rental rate for each property may be determined with the help of a thorough market analysis, which will also reveal what your rivals are doing. In this post, we’ll walk you through the steps involved in performing a highly accurate rental market analysis.
Research the Neighborhood
The first step is to gather data. A few things to consider are vacancy rates and average rental prices in the area. You can do this by contacting a local real estate agent or by performing an internet search. With this knowledge, you can understand what your rivals are doing.
It’s also crucial to carefully evaluate the neighborhood where your property is situated, considering nearby landmarks, the area’s general walkability, the caliber of the local schools, the accessibility of nearby stores, and other factors. Observe how well-kept the streets are and how many of the homes appear run down or vacant. Your rental rate is influenced by all of this information, which also affects how desirable an area is.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Look at each property’s square footage, number of bedrooms and bathrooms, and any unique features or amenities it offers. Additionally, pay close attention to the property’s condition because a well-maintained one will rent for more money than a dilapidated one. You can find out this by taking a tour of every property or, if available, by viewing the photos.
Age, general condition, and wear and tear are factors that affect rental rates. Look for properties that are as close to yours as possible to get the most accurate view of the local rental market. Finally, research each property’s current rental rates. You can look up this information online, ask the tenant, or get in touch with the owner or existing property manager.
Calculate the Average Rent per Square Foot
To determine the value of your property in the current market, obtaining the necessary information is critical. An important part of this procedure is figuring out the average rent per square foot, which calls for a more thorough investigation.
Divide the total square footage of all comparable properties by the total number of units to obtain the most accurate results. You will receive the average price per square foot for the area because of this computation. It is crucial to make sure that the location, age, size, and amenities of comparable properties match those of your own property.
By multiplying the average rent per square foot by the total square footage of your property, you can get an idea of the fair rent you can charge. Keep in mind that the precise characteristics and location of your property may affect the ultimate pricing.
Adjust Your Rate as Needed
However, you might have to adjust your rental rate based on a number of additional factors. For instance, if your property is in better condition than the others, you might charge more. It is possible to negotiate a higher rent if the property offers special features or amenities, or if it is in a more desirable location.
If the rental rate you can currently charge remains competitive in the market soon, you should also consider the current state of the economy. Using the information you’ve gathered and your best judgment, determine the rental rate.
Keep in mind that the rental market is constantly shifting, therefore you should perform a market analysis at least once a year. By doing this, you’ll be able to keep your property rented out and ahead of the competition.
The professionals at Real Property Management Teague are supporting you. We can offer the most accurate rental market analysis in East Greenbush and the neighboring areas because we have access to proprietary industry data and the necessary experience. For additional information or a market analysis for your property, please contact us via phone at 518-612-4900 or online.
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