If you’re uncertain as to whether or not you should adjust your rental rates now, it might be because you haven’t done a market assessment on your rental properties in Hampstead within the past year. As rents for single-family rental homes continue to rise nationwide, property owners who are not adjusting their own rental rates every year may be losing rental income. But to know for certain the amount you should raise your rental rates, or even whether it’s a good idea to raise them at all, you will need to gather detailed market information. This information can assist you in determining the most competitive price for each of your properties. It’s because of this reason that an annual market assessment is necessary for your long-term real estate investing success.
Conducting regular market assessments is a key part of owning a profitable investment property in Hampstead. Through these assessments, property owners can figure out the market rental rate for their single-family rental homes. There are a variety of ways to calculate rental rates, but your rate should always be based on the rental market. If it isn’t, then you might end up setting a rate that is too high, making it difficult to rent the property. The reverse is also not good. You might set a rate that is too low and potentially lose rental income, or worse, potential tenants will avoid your property because they think something is wrong with it on account of the very low rate. To make sure that your rental rates are competitive with what renters in your location will pay, it’s crucial 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. Identify what the monthly rent for each property is, then divide that number by the square footage. Averaging the price per square foot will then result with the average rent for properties that are comparable to yours, and this can help you find out 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 may be elements that would justify a higher rental rate. 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.
Various investors have determined that rental market assessments play a vital role in searching and purchasing quality rental properties. That is why market assessments must be conducted annually to make it certain that your rental properties catch up with the changes 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.
However, one problem is that rental market assessments can take up a great deal of time, and if the inappropriate 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 definitely the reason why working with industry experts on your investment team is so important.
At Real Property Management Champion, we give free annual rental market assessments to each one of our property owners currently under contract, along with 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? Don’t hesitate to contact us for more information.
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