If you are the owner of a single-family rental property, you already know how important it is to stay ahead of the curve in today’s market. Regularly performing a rental market analysis is one of the best ways to achieve this. If you are looking into a property to buy or are handling a property you already own, a rental market analysis is very helpful.
In addition to helping you set an accurate rental rate for each property, a good market analysis will give you an idea of what your competition is doing. You can do a good rental market analysis by following the steps in this piece.
Research the Neighborhood
The first step is to gather data. The average rental prices and vacancy rates in the area are two things you should look at. Searching online or getting in touch with a local real estate agent are both viable options. You can figure out what your competitors are doing once you are given this knowledge.
It’s also crucial to carefully evaluate the neighborhood in which your property is located, taking into account things like nearby attractions, the area’s overall walkability, the caliber of the schools, the ease of getting to stores, and so on. Keep an eye out for how clean the streets are and how many homes appear run down or vacant. It all depends on how desirable an area is, which in turn depends on your rental rate.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. As you look at each property, you should think about its square footage, number of bedrooms and bathrooms, and any unique features or services it has. A well-kept property will rent for more than one that is falling apart, so pay close attention to that as well. As you look at each property or at pictures, if they are available, you can figure this out.
Rental rate factors include age, wear and tear, and general state. You can get the truest picture of the rental market in the area by looking at homes that are as much like yours as possible. Get a current rental rate for each property by doing some study in the end. Look this up online, talk to the renter, or call the current property manager or owner.
Calculate the Average Rent per Square Foot
To determine the value of your property in the current market, obtaining the necessary information is critical. To figure out the average rent per square foot, which is an important part of this process, you need to do more complicated research.
Simply add up the square footage of all similar properties and divide that number by the number of units to get the most accurate results. Your average price per square foot for the area will be found by doing this math. Making sure that comparable properties are located in the same area, are the same age, are the same size, and have the same amenities as yours is very important.
Figure out how much you can charge for rent by multiplying the average rent per square foot by the total square footage of your property. Always keep in mind that the final amount may be different based on the features and location of your property.
Adjust Your Rate as Needed
Still, there are a few other things that might mean you need to change your rental rate. One example is that you can charge more if your property is in better shape than the others. Another option is to try to get a higher rent if the apartment is in a better area or has extra features or services.
In addition, you should think about the economy and whether the rent rate you can offer now will still be fair in the near future. Establish your rental rate based on the details you’ve gathered and your own good sense.
If you want to stay ahead of the rental market, you should do a market analysis at least once a year. Along with keeping your property rented, this will help you stay ahead of the competition.
Your case is being looked after by the experts at Real Property Management Premium. We can give you the most accurate rental market studies in Prairieville and the nearby areas because we have access to unique industry data and the professionals to use it. Contact us online or call 225-570-8739 to find out more or ask for a property market analysis!
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