You know how critical it is to stay current with the market, single-family rental property owners. Regularly completing a rental market analysis is one of the best ways to accomplish that. A rental market analysis will be extremely helpful if you own rental property or are considering buying one.
A comprehensive market analysis will help you find out more about the competition and establish an accurate rental rate for each property. This article provides a detailed explanation of how to conduct a trustworthy rental market analysis.
Research the Neighborhood
The first step is to gather data. You know how critical it is to stay current with the market, single-family rental property owners. Regularly completing a rental market analysis is one of the best ways to accomplish that. A rental market analysis will be extremely helpful if you own rental property or are considering buying one.
A comprehensive market analysis will help you find out more about the competition and establish an accurate rental rate for each property. This article provides a detailed explanation of how to conduct a trustworthy rental market analysis.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. In addition to the number of bedrooms and bathrooms, take into account the property’s square footage and any other extra features or amenities. Additionally, pay close attention to the property’s condition because well-maintained properties tend to rent for more than dilapidated ones. This assessment can be aided by walking into each property or, if available, by looking through any photos.
A number of variables, including age, general condition, and wear and tear, affect rental rates. It’s ideal to look at properties that are as similar to yours as possible in order to get a sense of the local rental market. Do some research to find out each property’s current rental rate. You can find this information by searching online, talking to the tenant, or getting in touch with 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. Finding the average rent per square foot requires more research, but it’s necessary, nonetheless.
For the most accurate results, the total square footage of all comparable properties must be summed up and divided by the total number of units. This method can be used to find the average price per square foot of a given area. It’s critical that comparable properties match yours in terms of location, age, square footage, and amenities.
By multiplying the average rent per square foot by the total square footage of your property, you can get an approximate idea of the monthly rent you can charge. Remember that the total amount could vary based on your property’s particular features and location.
Adjust Your Rate as Needed
Your rental rate may need to alter, though, depending on a variety of other factors. One may be able to request a greater price if, for example, their property is in better condition than theirs. If it’s in a more desirable location or has special features or services, however, you might be able to negotiate a higher rent.
Consider the current state of the economy and whether the rental rate you may offer will remain competitive with the market in the near future. Utilizing the information you’ve gathered and your best judgment, determine your rental rate.
Keep in mind that the rental market is constantly changing, therefore it’s critical to perform a market analysis frequently, ideally once a year. This might help you maintain occupancy on your property and outperform the competition.
You may rely on Real Property Management Ambassadors‘ experience. Because we have access to unique industry data and the expertise to understand it, our rental market assessments in Harwood and the surrounding areas are the most accurate. If you would like more details or would like us to conduct a market analysis on your property, please contact us over the internet or by phone at 701-970-2600.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
