If you own a single-family rental property, you already know how important it is to adapt to the changing market conditions. For this purpose, it is useful to do a rental market analysis on a regular basis. Whether you’re looking into the rental potential of a property you wish to buy or are currently the proud owner of one, a rental market analysis will be invaluable.
In addition to helping you determine an accurate rental rate for each property, a competent market analysis will give you insight into how your competitors are faring. Following the techniques outlined in this article will allow you to conduct a reliable rental market analysis.
Research the Neighborhood
The first step is to gather data. If you own a single-family rental property, you already know how important it is to adapt to the changing market conditions. For this purpose, it is useful to do a rental market analysis on a regular basis. Whether you’re looking into the rental potential of a property you wish to buy or are currently the proud owner of one, a rental market analysis will be invaluable.
In addition to helping you determine an accurate rental rate for each property, a competent market analysis will give you insight into how your competitors are faring. Following the techniques outlined in this article will allow you to conduct a reliable rental market analysis.
Identify Comparable Properties
Next, you will want to find several comparable properties close to your own. If you own a single-family rental property, you already know how important it is to adapt to the changing market conditions. For this purpose, it is useful to do a rental market analysis on a regular basis. Whether you’re looking into the rental potential of a property you wish to buy or are currently the proud owner of one, a rental market analysis will be invaluable.
In addition to helping you determine an accurate rental rate for each property, a competent market analysis will give you insight into how your competitors are faring. Following the techniques outlined in this article will allow you to conduct a reliable rental market analysis.
Calculate the Average Rent per Square Foot
To determine the value of your property in the current market, obtaining the necessary information is critical. Calculating the average rent per square foot is an important part of this procedure that calls for a deeper dive into the data.
The total square footage of all comparable properties must be added up and divided by the total number of units to get the most precise results. You can use this method to determine the average price per square foot in the region. In terms of location, age, size, and amenities, it is crucial to make sure that comparable properties are comparable to your own property.
You can calculate the appropriate rent you can charge for your property by multiplying the average rent per square foot by the total square footage of the property. Take into account that the final sum may change based on the unique characteristics of your property and its location.
Adjust Your Rate as Needed
However, there are a number of other considerations that may necessitate a change in the rental rate. You might be able to charge more, for instance, if your property is in better condition than the competition. Alternatively, you might be able to get a higher rent if it’s in a more desirable location or has unique features or services.
Think about whether or not the rental rate you could charge right now will still be competitive with the market in the near future, and factor in the state of the economy. Set your rental rate using the knowledge you’ve obtained and your best judgment.
Keep in mind that the rental market is always shifting, therefore it’s important to conduct a market analysis on a regular basis, ideally once a year. Keeping your property occupied and ahead of the competition is much easier with this.
The experts at Real Property Management Solutions are fighting for you. The rental market evaluations we provide in Portland and the surrounding areas are the most accurate since we have access to exclusive industry data and the expertise to interpret it. Get in touch with us at 503-224-3002 or contact us online to get more information or to arrange for a free market analysis of your property!
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