Being ahead of the curve in today’s market is crucial, as any owner of a single-family rental property is undoubtedly aware. Regularly carrying out a rental market analysis is one of the greatest strategies to do that. Whether you are looking at purchasing a property or managing one that you already own, a rental market analysis is essential.
In addition to helping you determine an accurate rental rate for each property, a competent market analysis will give you insight into what your competitors are doing. This article will guide you through the process of doing a precise rental market analysis.
Research the Neighborhood
The first step is to gather data. You should check at factors like the area’s average rental prices and vacancy rates. Either an internet search or a call to a local real estate agent can be used to find this information. You can comprehend what your rivals are doing once you have this information.
It is also crucial to thoroughly evaluate the neighborhood in which your property is located, taking into account the accessibility of shops, the proximity to other attractions, and the general walkability of the region. Observe the cleanliness of the streets and how many homes appear run down or vacant. Your rental rate will be impacted by all of this information, as well as how desirable an area is.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. Consider factors such as the square footage, the number of bedrooms, and any unique features or services that each property has to offer. Additionally, pay particular attention to the state of the property because well-maintained properties tend to rent for more than run-down ones. If available, you can look at images or conduct a walk-through of each property to find out this information.
Rental rate factors include age, wear and tear, and general condition. To acquire the most realistic view of the local rental market, it’s critical to choose properties that are as close as possible to your own. Get the current rental rate for each property by conducting research. You can obtain this information by searching online, speaking with the tenant, or contacting 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. Finding the average rent per square foot is an important step in this process that calls for additional in-depth research.
You should multiply the total square footage of all comparable properties by the total number of units to get the most accurate results. You can find the area’s average price per square foot using this technique. It is imperative to confirm that comparable properties share your property’s age, location, size, and amenities.
Once you know the average rent per square foot, you can calculate the reasonable rent you can charge by multiplying this amount by the total square footage of your property. Recall that the ultimate amount could change based on the particular features and location of your property.
Adjust Your Rate as Needed
Nevertheless, a number of additional considerations can also require you to modify your rental rate. It is possible to charge more if your property is in better condition than others. You might even be able to negotiate a higher rent if it’s in a more desirable location or has unique features or facilities.
The state of the economy at the moment should also be taken into account. Will the rental rate you may charge now still be competitive with the market in the near future? Set your rental rate using the knowledge you’ve obtained and your best judgment.
Keep in mind that because the rental market is dynamic, you should conduct a market analysis on a regular basis, ideally once a year. By doing this, you may maintain your advantage over the competition and keep your property occupied.
You have the support of the experts at Real Property Management Suncoast. Our industry-exclusive data and requisite knowledge enable us to provide the most precise rental market evaluations in Bradenton and its surrounding areas. To find out more or to get a market analysis for your property, Contact us online or give us a call at 941-309-1111!
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