Being a single-family rental property owner right now, it’s important to stay ahead of the competition because of the state of the economy. Occasionally, a rental market analysis is a great way to do this. You might find a rental market analysis useful if you want to buy rental property or if you already own and handle rental property.
You can get an accurate rental rate for each property and learn what your rivals are doing by doing a thorough market analysis. After that, I’ll talk about how to do a full rental market analysis.
Research the Neighborhood
The first step is to gather data. It’s important to look at the average rental prices and vacancy rates in the area. To do this, look online or find a local real estate agent. You will have a better idea of who your competitors are after reading this.
It’s also important to carefully evaluate the neighborhood where your property is located. Take into account the area’s general walkability, the caliber of the schools nearby, and the accessibility of nearby stores. Take note of how well the streets are kept up and how many homes appear run down or vacant. You can establish a rental rate using this data and how desirable an area is.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Find out how big the property is in square footage, how many bedrooms and bathrooms it has, and anything else that makes it stand out. In the same area and size, a well-kept property will command a higher rent. You can either look at the pictures or visit each property in person to learn more.
Age, general health, and wear and tear are some other things that affect rental rates. Check out the rental market in your area by comparing the lists of homes that are close to where you live. Do not forget to find out how much each property is rented for right now. Talking to the tenant, looking it up online, or getting in touch with the owner or existing property manager are all ways to get this information.
Calculate the Average Rent per Square Foot
To determine the value of your property in the current market, obtaining the necessary information is critical. Finding out the average rent per square foot is a very important step that takes a lot of work.
To get the most exact results, add up all of the square footage of comparable properties and then divide that number by the number of units. This is a way to find out what the average price per square foot is in the area. The age, size, location, and features of comparable properties must match those of your own property.
To get an idea of how much rent you can charge each month, multiply the average rent per square foot by the property’s total square footage. Keep in mind that the exact price will depend on the features and location of your property.
Adjust Your Rate as Needed
However, other things may mean that your rental rate needs to change. If your property is in better condition than the others, you might be able to charge more in this situation. Some homes may be able to get higher rent because they are in a better area or have better features or services.
If the rental rate you want to charge now will still be competitive in a short time, look at the current state of the economy. Pick the rental rate based on what you know and what you think is the best deal.
To stay current with the rental market, you should conduct a market analysis every year. You’ll be able to stay ahead of the competition and keep your property rented out.
You can trust Real Property Management NW Indiana because they know a lot. We can give you the most accurate rental market analysis in Highland and the nearby places because we have access to private industry data and have worked in this field for years. You can call or contact us at 219-525-1277 if you want to talk to us or get a free market analysis of your house.
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