Doing regular market assessments are a key part of owning a profitable investment property in Stamford. 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. On the other hand, you may set a rate that is too low. That’s no good as well. You’ll risk losing rental income, or worse, not being able to find tenants because they may think 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 start the process; first, identify at least three rental properties that match 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 reveal the average rent in the area for properties like yours. This information will help you identify the most accurate rental rate for your property.
There are other elements to consider when doing a rental market assessment. You’ll need to consider the attractiveness of the neighborhood, proximity to amenities, and access to major roads and public transit. When assessing the local rental market, there are aspects that will call for a higher rental rate. A great neighborhood, without too many distressed properties or roads with potholes and cracked sidewalks, will hold a much greater appeal for quality renters. Nearby amenities like libraries, shopping, and parks can also be a good attraction, so would quick and easy access 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. 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.
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. For this reason, including industry experts on your investment team is so important.
At Real Property Management Southern Connecticut, we have a free annual rental market assessment for every single one of our property owners currently under contract, together 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 in 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.