Implementing regular market assessments are a key part of owning a profitable investment property in Garland. These assessments can do a lot to help property owners find out the market rental rate for their single-family rental homes. There is more than one way to calculate rental rates, but they should all be based on the rental market. If it isn’t, you risk setting a rate that is too high, and if your rate is too high then you may have difficulty renting the property. The other way around also has its disadvantages. If you set a rate that is too low, you risk losing rental income, or worse, you’ll drive away potential tenants because the cheap price will make them think that there is something wrong with the property. To make certain that your rental rates are at the same level with what renters in the area are willing to pay, it’s critical that you know what the going rental rate is for properties in your local market.
Conducting a rental market assessment entails gathering information on average rents for rental properties in a particular area. You can begin the process; first, identify at least three rental properties that are approximately the same as yours. Get the monthly rent for each of the properties, and then divide that number by the square footage. Averaging the price per square foot will then show you what the average rent is for properties like yours. This can help you come up with the most accurate rental rate for your property.
There are other factors that must be taken to account when going through a rental market assessment. These factors include the attractiveness of the neighborhood, proximity to amenities, and access to major roads and public transit. When assessing the local rental market, there are components that can make the rental rate go higher. A neighborhood that is nice, without a lot of distressed properties or broken roads and sidewalks, will be more appealing for quality renters. Nearby amenities like libraries, shopping, and parks can also have great appeal, as well as being accessible to major roads and public transportation. All of these aspects need to be looked into when doing a rental market assessment, so you could come up with the appropriate rental rate adjustments.
Several investors understand that rental market assessments are a significant part of locating and acquiring quality rental properties. However, market assessments must, therefore, be conducted annually to see to it that your rental properties correspond with whatever changes there are in the local rental market. Regular rental increases can ensure that a rental property continues to be profitable over the long term and remains competitively priced no matter what the local market is doing.
The one difficulty is that rental market assessments can use up plenty of time, and if the wrong comparable properties are used, it could result in a significant loss of rental income from extended vacancies or a rental rate that is too low. This is exactly the reason why involving industry experts on your investment team is so important.
At Real Property Management Focus, we offer free annual rental market assessments to each and every one of our property owners currently under contract, including one free rental market assessment to property owners considering our services. By performing a fresh market assessment on each property every year, one anchored to market understanding and accurate facts, we help investors make their rental properties competitively and accurately priced.
Would you like to take advantage of a free rental property assessment? Feel free to contact us for more information.