If you don’t have an idea whether today is the appropriate time to increase your rental rates, it’s certainly because you haven’t made a market assessment on your rental properties in Pleasant Garden in the last 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. Hence, to ascertain clearly whether you should raise your rental rates – and by what amount – you ought to have detailed market information that can aid you in establishing the most competitive price for all of your properties. In this regard, an annual market assessment is necessary for your long-term real estate investing success.
Executing regular market assessments are a key part of owning a profitable investment property in Pleasant Garden. These assessments can support property owners in identifying the market rental rate for their single-family rental homes. There are several methods to calculate rental rates, however unless your rate is on par with the rental market, you may set a rate that is too high, causing it to be really tough to get the property rented out. On the contrary, you could perhaps set a rate that is too low and waste earning rental income, or unfortunately, not be able to get tenants to move in because they might assume something is wrong with the property. To ensure that your rental rates are in line with what renters in your vicinity will accept, it’s vital to find out 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. One method to execute this is to first identify at least three rental properties that are the same as yours. Get the monthly rent for each one, and then divide that number by the square footage. Averaging the price per square foot will, moreover, provide you an average rent for properties similar to yours in the same area, which can assist you to find out the ideal and accurate rental rate for your property.
Various other elements that are essential to take into consideration when performing a rental market assessment consist of the attractiveness of the neighborhood, proximity to amenities, and access to major roads and public transit. When assessing the local rental market, there are characteristics that will support a higher rental rate. A neighborhood that is especially well maintained, without too many worn-out properties or broken roads and sidewalks will maintain a far more powerful allure for top-grade renters. Nearby amenities like libraries, shopping, and parks can also be a firm attraction, as well as unhindered access to major roads and public transportation. All of these elements have to be considered when performing a rental market assessment, giving rise to appropriate rental rate adjustments.
Several investors understand that rental market assessments are a significant attribute of locating and acquiring quality rental properties. However, market assessments must, furthermore, be conducted annually to see to it that your rental properties are corresponding with whatever 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 unsuitable 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 are so important. At Real Property Management of the Triad, we offer free annual rental market assessments to each and every one of our property owners currently under contract, including 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 the market knowledge and solid data, we assist investors to retain and keep their rental properties competitively and accurately priced.
Would you like to take advantage of and make use of a free rental property assessment? Please contact us for more helpful information.
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