If you don’t have a clue if it’s already a good time to change your rental rates, it’s definitely because you haven’t performed a market assessment on your rental properties in Indianapolis over the recent 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. However, to understand for certain whether you should raise your rental rates – and by how high – you need to have detailed market information that can assist you in determining the most competitive price for each one of your properties. As a result, an annual market assessment is important to your long-term real estate investing success.
Doing regular market assessments are a key part of owning a profitable investment property in Indianapolis. These assessments can aid property owners to know the market rental rate for their single-family rental homes. There are a lot of ways to calculate rental rates, but unless your rate is in accordance with the rental market, you jeopardize setting a rate that is too high, making it hard to lease the property. Inversely, you may probably set a rate that is too low, and suffer the loss of rental income, or worst case, are not capable finding tenants since they believe something is not right with the property. To be certain that your rental rates are in accordance with what renters in your place will settle for, it’s essential to have an idea on 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 approach to performing this is to first identify at least three rental properties that are similar to yours. Get the monthly rent for each one, and then divide that number by the square footage. Averaging the price per square foot will, hence, this will grant you an average rent for the properties similar to yours in the location, which can support you in identifying the best and most accurate rental rate for your property.
Some other aspects that are necessary to take into account when carrying out a rental market assessment are the attractiveness of the neighborhood, proximity to amenities, and access to major roads and public transit. When assessing the local rental market, there are elements that will justify a higher rental rate. A neighborhood specifically in the mend and good repair, free from excessively damaged properties or dilapidated roads and sidewalks, will hold a solid attraction for prime renters. Nearby amenities like libraries, shopping, and parks can also be a great appeal, as well as easy reach and accessibility to major roads and public transportation. All of these components shall be taken into consideration when executing a rental market assessment, leading to appropriate rental rate adjustments.
Various investors ascertain that rental market assessments are a vital portion of searching for and purchasing quality rental properties. Hence, market assessments shall likewise be conducted annually to make sure that your rental properties are keeping abreast 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 sole disadvantage is that rental market assessments can consume so much time, and if the incorrect 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 are so important. At Real Property Management Indianapolis Edge, 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 doing a fresh market assessment on each property every year, one in accordance with market know-how or expertise and exact information, we support investors in maintaining their rental properties competitively and accurately priced.
Would you like to take advantage and avail of a free rental property assessment? Please contact us for more beneficial information.
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