You are familiar with how important it is to stay on top of the market if you are the owner of a single-family rental property. A rental market analysis should be done on a regular basis as one of the best ways to achieve this. If you want to buy a new property or take care of one you already own, a rental market analysis can help.
An accurate rental rate for each property can be determined with the help of a good market analysis, which will show you what your competition is doing. We will walk you through the steps of doing a correct rental market analysis in the next few sentences.
Research the Neighborhood
The first step is to gather data. Average rental prices and vacancy rates in the area are two things you should think about. Looking online or getting in touch with a local real estate agent can help you achieve this. When you know these things, you can figure out what your rivals are doing.
Also, it’s important to carefully evaluate the neighborhood where your property is located, taking into account things like nearby attractions, the region’s overall walkability, the quality of the schools, how close you are to shops, and so on. Keep an eye out for how clean the streets are and how many homes appear run down or vacant. Your rental rate will depend on how desirable an area is based on all of these factors.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Check out each property’s square footage, number of bedrooms and bathrooms, and any special features or services it offers. Pay close attention to the property’s state as well, as one that has been well taken care of will rent for more than one that has been neglected. This can be found out by going through each property or, if possible, looking at pictures.
Things like age, wear and tear, and general state affect the rental rate. Find rental homes that are as close to yours as possible to get the most accurate picture of the rental market in the area. Get a current rental rate for each property by doing some research. You can look this up online, talk to the tenant, or contact 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. A bigger part of this process is figuring out the average rent per square foot, which takes more study.
To get the most accurate results, multiply the total square footage of all comparable properties by the total number of units. The average price per square foot for the area will be given to you by this estimate. In terms of location, age, size, and amenities, it is essential to make sure that comparable properties are comparable to your property.
The appropriate rent you can charge is determined by multiplying the average rent per square foot by the total square footage of your property. Remember that the final number may be different depending on your property’s traits and where it is located.
Adjust Your Rate as Needed
Even so, there are a few other reasons why you might need to change your rental rate. You might charge more, for instance, if your property is in better condition than the others. You might also be able to bargain for a higher rent if it’s in a more desirable location or has special features or facilities.
The current state of the economy and whether the rental rate you may charge now will still be competitive in the market in the near future should also be considered. Set your rental rate based on the information you have gathered and your own opinion.
You should conduct a market analysis at least once a year because the rental market is constantly changing. Staying ahead of the competition and keeping your property rented will help you do this.
You can count on Real Property Management Clarity Central. We can give you the most accurate rental market analysis in Columbus and the nearby areas because we have our own industry data and years of experience. To find out more or to get a market analysis for your property, contact us online or by phone at 614-405-2340!
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