Any owner of a single-family rental property is certainly aware of how important it is to stay ahead of the curve in the current market. One of the best ways to do it 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 that you currently own.
A competitive market analysis will show you what your rivals are doing in addition to assisting you in determining an accurate rental rate for each property. You will be guided through the process of performing an accurate rental market analysis by this article.
Research the Neighborhood
The first step is to gather data. A few things to consider are the average rental prices and vacancy rates in the region. To find this information, use the internet or give a local real estate agent a call. Once you have this knowledge, you can understand what your competitors are doing.
It’s also critical to properly evaluate the neighborhood where your property is situated, taking into account factors like the area’s general walkability, closeness to nearby attractions, and ease of access to stores. Take note of how well-kept the streets are and how many of the homes appear run down or vacant. All of these details, along with 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. The square footage, number of bedrooms, and any special features or services that each property offers should all be taken into account. Furthermore, keep a close eye on the property’s condition because well-kept homes typically rent for more than dilapidated ones. If it’s possible, you can learn this information by taking a tour of each property or by looking at pictures of it.
Age, overall condition, and wear and tear are factors that affect rental rates. Selecting rentals 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 out each property’s current rental rate. You can look up this information online, ask 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. In this procedure, determining the average rent per square foot is a crucial step that necessitates further thorough investigation.
For the most accurate results, multiply the total square footage of all comparable properties by the total number of units. This method will give you the average price per square foot for the area. Verify if the age, location, size, and features of your property are shared by comparable properties.
By multiplying the average rent per square foot by the total square footage of your property, you can determine the fair rent you can charge. Keep in mind that the final sum may vary depending on the specifics and location of your property.
Adjust Your Rate as Needed
However, you may 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 more sought-after location or has special amenities, you could even be able to bargain for a higher rent.
It is also important to consider the current state of the economy. In the near future, would the rental rate you may be able to charge still be competitive with the market? Using the information you’ve learned and your best judgment, determine your rental rate.
Remember that you should conduct a market analysis on a frequent basis, ideally once a year, due to the dynamic nature of the rental market. You may keep your property occupied and retain your competitive advantage by doing this.
You have the professionals at Real Property Management Unlimited on your side. With our industry-only data and necessary expertise, we can offer the most accurate rental market assessments in Oyster Bay and the surrounding areas. Give us a call at 516-875-1600 or Contact us online to learn more or to receive a market analysis for your property!
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.
