Any person in charge of a single-family rental property knows how important it is to stay ahead of the curve in today’s market. One of the best ways to achieve that is to conduct a rental market analysis on a regular basis. A rental market analysis is crucial whether you’re planning to buy a property or are managing one you already own.
A competitive market analysis will not only help you figure out an accurate rental rate for each property, but it will also reveal what your rivals are up to. You may make an accurate rental market analysis with the help of this article.
Research the Neighborhood
The first step is to gather data. The average rental prices and vacancy rates in the neighborhood are two things you should look at. To locate this information, use the internet or give a local real estate agent a call. With this knowledge, you can understand what your competitors are doing.
It is also essential to properly evaluate the neighborhood where your property is situated, considering factors such as the area’s general walkability, closeness to nearby attractions, and ease of access to stores. Check see how well-kept the streets are and how many of the homes appear run down or vacant. All of this information, in addition to how desirable an area is, will affect your rental rate.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. It is important to take into account many aspects of each property, including its square footage, number of bedrooms, and special features or amenities. Furthermore, give close attention to the property’s condition because well-kept homes typically rent for more than dilapidated ones. If available, you can learn this information by taking a tour of each property or by looking at pictures.
Age, overall condition, and wear and tear all affect rental rates. Selecting properties that are closest to your own is essential if you want to get the most accurate picture of the local rental market. Do some research to find each property’s current rental rate. You can look up this information online, talk to the tenant, or get in touch with the owner or property manager at the moment.
Calculate the Average Rent per Square Foot
To determine the value of your property in the current market, obtaining the necessary information is critical. One crucial step in this process that necessitates more thorough investigation is figuring out the average rent per square foot.
For the most accurate results, you should multiply the total square footage of all comparable properties by the total number of units. Using this method, you may find the average price per square foot in the area. It is critical to ensure that the age, location, size, and amenities of your property are shared by comparable properties.
You can determine the fair rent you can charge by calculating the average rent per square foot by the total square footage of your property. Remember that the final sum may vary depending on the specific attributes and location of your property.
Adjust Your Rate as Needed
However, you could also need to adjust your rental rate due to a number of other factors. If your property is in better condition than others’, you may be able to charge more. If it’s in a better location or has special amenities, you could even be able to bargain for a higher rent.
Additionally, it is important to consider the current state of the economy. In the foreseeable future, would the rental rate you may currently charge continue be competitive with the market? Utilizing the information you’ve learned and your best judgment, determine your rental rate.
Remember that the rental market is changing, thus you should preferably conduct a market analysis once a year. You might be able to keep your property occupied and retain your competitive advantage by doing this.
The specialists at Real Property Management Performance are behind you. We can offer the most accurate rental market assessments in Middlesex County and the neighboring areas thanks to our industry-exclusive data and necessary knowledge. Call us at 732-289-9337 or Contact us online to learn more or to receive a market analysis for your property!
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