If you don’t know when the best time would be to change your rental rates, it may be because you haven’t done a market assessment within the past year. Now, you’re not very sure what the best rates are for your rental properties in Heber Springs. 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. However, to be confident with your decision on whether or not you should raise your rental rates, you will need to have detailed market information. This information can help you determine how much you should adjust to get 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.
Carrying out regular market assessments plays a key part in owning a profitable investment property in Heber Springs. These assessments help property owners find out the market rental rate for their single-family rental homes. There are a lot of ways to calculate rental rates, but if your rate isn’t based on the rental market, then you risk setting a rate that is too high, making it very difficult to rent the property. On the flip side, you might set a rate that is too low and risk losing rental income. That’s not the only downside, though. You also may not be able to find any tenants because they’ll think that the low price is because something is wrong with the property. 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. What you can do is to first identify at least three rental properties that are equivalent to 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 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 may be things that will warrant a higher rental rate. A nice neighborhood, with pristine properties, smoothly paved roads, and good sidewalks, will hold a much better appeal for quality renters. Nearby amenities like libraries, shopping, and parks can also be a powerful attraction, as would easy access to major roads and public transportation. All of these elements have to be considered when performing a rental market assessment, giving you the appropriate rental rate adjustments.
Most investors realize that rental market assessments are an essential detail when seeking and procuring 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 Delta, 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 executing a fresh market assessment on each property every year, one in conformity with market expertise and solid data, we assist investors in retaining and keeping 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.
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