If you can’t tell very well if this is the opportune time to revise your rental rates, it’s surely because you haven’t accomplished a market assessment on your rental properties in Liberty Lake during 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. Moreover, to find out certainly whether you should raise your rental rates – and by what percentage – you must have detailed market information that can support you in fixing the most competitive price for any of your properties. Because of this, an annual market assessment is significant to your long-term real estate investing success.
Accomplishing regular market assessments are a key part of owning a profitable investment property in Liberty Lake. These assessments can assist property owners to figure out the market rental rate for their single-family rental homes. There are various means to calculate rental rates, however, provided your rate is in correspondence with the rental market, you stake setting a rate that is too high, causing it to be burdensome and really difficult to rent out the property. On the other hand, you could set a rate that is too low, and jeopardize losing rental income, or even worse, not really able to acquire tenants because they may suppose something is bad with the property. To see to it that your rental rates are as per what renters in your position will agree to, it’s significant to identify 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 means to carry this out is to first identify at least three rental properties that are like yours. Find out the monthly rent for each one, and then divide that number by the square footage. Averaging the price per square foot will thus bring you an average rent for properties comparable to yours in the vicinity, which can aid you to know, more or less, the best and accurate rental rate for your property.
Several other components that are vital to take into consideration when executing a rental market assessment are, among others, 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 justify a higher rental rate. A neighborhood which is in a very good state, which does not have so many beat-up properties or cracked roads and sidewalks, will retain a much more enhanced charm for ideal and top-grade renters. Nearby amenities like libraries, shopping, and parks can also be a powerful allure, as ready accessibility to major roads and public transportation. All of these aspects need to be looked into when doing a rental market assessment, causing appropriate rental rate adjustments.
Most investors realize that rental market assessments are an essential detail of seeking and procuring quality rental properties. Thus market assessments may, in addition, be conducted annually to make certain that your rental properties are catching 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 require a great deal of time, and if inappropriate comparable properties are used, 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 are so important. At Real Property Management Spokane County, we render free annual rental market assessments to 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 in reference to market understanding and accurate fact, we aid investors to make their rental properties competitively and accurately priced.
Would you like to make full use of a free rental property assessment? Please contact us for more useful information.
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