Up until now, landlords have enjoyed abundant demand for their rental properties as home prices soar. Now, despite an ongoing uptick in real estate prices, rent growth is slowing and vacancies are increasing.
So, if you're a real estate investor looking for new tenants, you need all the help you can get. Setting appropriate rent prices is the first step toward attracting tenants and ensuring you profit from your investments.
Carrying out a rental analysis is an important tool in this process. Keep reading to find out why.
A Rental Analysis Helps You Find More Tenants
Exorbitant rentals will drive potential tenants away. Nobody wants to pay more than they need to for a roof over their heads. By comparing your prices with similar properties, you can set rental rates that are in line with the neighborhood.
When you compare your investment property with others in the area, you may also identify appealing improvements that can justify higher rentals or help you attract more interest in your rental home.
Rental property vacancies are expensive. You still need to pay property taxes, mortgage payments, and maintenance costs, whether you have tenants on your property or not.
Reasonable rental rates will ensure you attract tenants to help you cover these costs.
It Helps You With Investment Decisions
During the rental analysis process, you'll take a deep dive into the operational expenses of your investment property. You must consider these costs when determining a fair rental.
If you can't make ends meet, you may need to consider other options, like selling the home or converting it into a more lucrative short-term rental.
For those considering investing in real estate, it's wise to carry out a rental analysis before you commit to buying a property. This will help you decide whether a potential rental home will prove profitable.
Keep Tenants in Place
Apart from the ongoing costs associated with rental property vacancies, finding new tenants can also be costly. You need to clean your property and go to the expense and effort of marketing it again.
Then, you must go through the arduous tenant screening process until you find someone suitable.
In tough times, people are looking to save money wherever they can. This will cause your tenants to search for cheaper accommodation throughout their stay, no matter how happy they are with their situation.
By setting fair rent prices, you increase the chances of good tenants renewing their leases.
Maximize Your Boise Investment Property
A rental analysis is the first step in determining whether a rental property is a good investment for you. It also helps you set a fair price, identify potential improvements, and attract the right tenants.
Wave Property Management has the experience and expertise to carry out extensive rental valuations to ensure you charge rent that's in line with your property's worth. We offer the full range of property management services to help you keep your tenants in place, too.
Reach out to discuss how we can help you maximize your Boise investment properties.