As a single-family rental property owner, you already understand how critical it is to keep ahead of the curve in today’s market. Conducting a rental market analysis on a regular basis is one of the most effective ways to accomplish this. A rental market analysis is beneficial whether you are planning to purchase a property or manage one you already own.
A thorough market analysis will reveal what your competitors are up to and will aid you in calculating an accurate rental rate for each property. In this essay, we will walk you through the steps of completing an accurate rental market analysis.
Research the Neighborhood
The first step is to gather data. You ought to weigh factors such as the region’s average rental prices and vacancy rates. This can be done through an online search or by contacting a local real estate agent. Once you have this information, you can understand what your competitors are doing.
It’s also crucial to thoroughly evaluate the neighborhood in which your property is located, taking into account nearby attractions, the overall walkability of the region, the quality of schools, and the proximity to shops, among other things. Take note of how tidy the streets are, as well as how many homes appear run down or vacant. All of this information affects how desirable an area is and, as a result, your rental rate.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Examine the property’s square footage, number of bedrooms and bathrooms, and any special features or facilities. Also, pay close attention to the property’s condition, since a well-kept one will rent for more than one in ruin. This can be determined by traveling through each property or, if photographs are available, by looking at them.
Age, wear and tear, and overall condition are also rental rate variables. Look for houses that are as close to yours as possible to get the most accurate picture of the rental market in the region. Finally, investigate the current rental rates for each property. This information can be obtained by searching online, conversing with the tenant, or contacting the existing 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. A vital stage in this procedure is calculating the average rent per square foot, which requires a more in-depth investigation.
To achieve the most accurate results, sum up the total square footage of all comparable properties and divide it by the total number of units. This calculation will give you the average price per square foot in the area. It is vital to ensure that comparable properties have characteristics such as location, age, size, and amenities with your property.
By calculating the average rent per square foot by the total square footage of your property, you can estimate the appropriate rent you can charge. Keep in mind that the ultimate cost will depend on the specific characteristics and location of your property.
Adjust Your Rate as Needed
On the other hand, depending on a variety of other factors, you may need to adjust your rental rate. In this case, if your property is in better condition than the others, you might charge an additional fee. You may be able to negotiate a higher rent if it is in a more desirable location or has distinctive features or facilities.
You should also consider the current state of the economy and if the rental rate you may now charge will remain competitive in the market soon. Set your rental rate depending on the information you’ve gathered and your best guess.
Because the rental market continues to evolve, you should conduct a market analysis at least once a year. This will keep your property occupied and you ahead of the competition.
The professionals at Real Property Management Trustworthy are on your side. We have proprietary industry data as well as the necessary experience to deliver the most accurate rental market analysis in Roxboro and the surrounding areas. Please contact us online or by phone at 984-666-0912 to learn more or to receive a market analysis for your property.
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