Because of the state of the economy, it’s critical to keep ahead of the competition as a single-family rental property owner right now. A rental market analysis is a fantastic approach to do this every once in a while. A rental market analysis may be beneficial if you are considering purchasing rental property or if you already own and manage rental property.
A thorough market analysis will help you determine an accurate rental rate for each property as well as enlighten you about what your competitors are doing. Next, I’ll go over how to conduct a thorough rental market analysis.
Research the Neighborhood
The first step is to gather data. It’s critical to consider the area’s average rental prices and vacancy rates. Find a local real estate agent or search online to accomplish this. After reading this, you will have a better understanding of your competition.
Additionally, it is critical to carefully evaluate the neighborhood in which your property is located. Consider the overall walkability of the region, the quality of surrounding schools, and the convenience of neighboring retailers. Examine how well the streets are maintained and how many homes appear run down or vacant. Using this information and how desirable an area is, you can set a rental rate.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Determine the property’s square footage, the number of bedrooms and bathrooms, and any other distinguishing features. A well-maintained property in the same neighborhood and size will attract a higher rent. You can look at the photographs or go see each property for yourself for additional information.
Other factors that influence rental rates include age, general health, and wear and tear. Compare the lists of homes close to where you live to see how the rental market is performing in your neighborhood. Last but not least, find out how much each property is now renting for. You can obtain this information by speaking with the tenant, searching online, or contacting 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. Understanding the average rent per square foot is a critical step that requires much effort.
To achieve the most accurate results, tally up the square footage of all comparable properties and divide that total by the number of units. This is a method for determining the average price per square foot in the area. It is critical that comparable properties have the same age, size, location, and features as your own property.
You can estimate how much rent you can charge each month by multiplying the average rent per square foot by the total square footage of the property. Remember that the precise cost will be determined by the features and location of your property.
Adjust Your Rate as Needed
Other factors, however, may necessitate a modification in your rental rate. You may be allowed to charge more if your property is in better condition than the others in this circumstance. Some homes may be able to command a higher rent because they have superior features or services or are in a better location.
Examine the present state of the economy to see if the rental rate you wish to charge now will still be competitive in a short period. Choose the rental rate based on your knowledge and what you believe to be the greatest offer.
Every year, you should conduct a market analysis to keep up with the rental market. This will allow you to stay ahead of the competition and keep your property occupied.
Real Property Management Forte knows a lot, so you can trust them. Because we have private industry data at our fingertips and have been working in this field for years, we can provide you with the most accurate rental market analysis in Deerfield and the surrounding areas. If you need to chat to us or get a free market analysis of your home, you may contact us online or call 954-708-1515.
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