Owning a real estate investment property is never easy. Investors have a lot to handle when it comes to tenants, property maintenance, setting rental rates, and more. However, property managers can introduce strategies to maximize your returns, including setting the best rental rate.
If your income suffers (or you struggle to find tenants), it's time to check the monthly rental amount. Follow these tips from Seattle property management professionals to conduct a rental market analysis! With the right insights, investors can determine the ideal rate, avoid empty properties, and maximize returns.
Understand the Market
Jumping into the real estate investment market brings forth plenty of competition from other local rental owners vying for the best tenants in the area. Conducting a market analysis helps investors understand the landscape and identify competitive price points when setting the monthly rent.
Working with a Seattle property management professional is one of the best ways to conduct a thorough market analysis. To learn everything you need to know for smart decisions, make sure your rental analysis includes the following critical elements.
The Number of Rental Homes
How many Seattle rental homes exist in your area? A property manager in Seattle can help you identify rental homes in the market. They'll also help you categorize rentals into single-family homes vs. multi-family properties.
With this information, you'll know how in-demand rental properties are and how your properties compare. If the market has many properties similar to yours, tenants have more options, and you might need to lower the rent amount to stay competitive. However, if your properties are unique and in high demand, you might be able to justify a higher rental rate and plenty of interest from potential residents.
Vacancy Rates and Rental Income
Your analysis should include two other data points: vacancy rates and rental income per square foot. With high market vacancy rates, tenants have the advantage again and can be more selective when choosing a property. With excessive vacancies, you might also struggle to find quality residents for your rentals. However, with low vacancy rates, your empty property is a sought-after commodity and can benefit from higher rental rates.
A property manager in Seattle can gather this data for you and help you understand how the numbers apply to your property and an ideal monthly rent amount. With the data on hand, you can better estimate the income you can expect from your property.
Average Days On the Market
How long do available rentals stay on the market? When analyzing vacancy rates, don't forget to factor in the average number of days rentals are available before finding tenants. The average number of days to rent a unit can help reveal information on the health of the Seattle market. The shorter the cycle of days on the market, the hotter the real estate space is. This can boost your rental rate and income!
Average Application Fees
Are you overcharging for application fees? If your fees are too high compared to other properties in the area, potential renters won't bother to send in applications to avoid your high fees. Don't miss out on excellent prospects by charging a fee that discourages potential renters before they ever visit your rental.
Hire a Property Manager to Deliver Critical Insights
If everything required for a thorough rental analysis seems overwhelming, you don't have to gather the information and decipher the analysis on your own! Work with a Seattle property management professional to understand the market and find the information you need to make smart decisions about the ideal rental rate.
A property management expert already has the information you need and can expedite the analysis process! However, if you're afraid that using a property manager to help you set the best rental price means you also have to hire them for full-service property management services, there is another way!
The right property manager prioritizes your success. If you don't need all of their services to reach your financial goals and manage your rentals the way you prefer, choose a property management solution that offers more than full-service package options.
Setting the right rental rate is a critical aspect of generating the returns you need from each rental property in your portfolio. Work with a property manager to get the research and insights you need. If that's all you need, make sure you partner with a property manager that won't hold you to more services than you want to pay for!
Set the Right Rates With the Right Seattle Property Management Solution
Professional Seattle property management insights can be beneficial when reviewing market research to set the right monthly rent amounts. However, working with a property manager doesn't need to be an "all or nothing" partnership that exceeds your budget and needs!
RentWatch is here to deliver rental analysis and specific services that fit the vision and goals for your rental properties. We offer specific service options and cost savings compared to most full-service property management fees! If you're ready to review the market before setting the rent, let's talk!
Learn more about the fundamentals of being an excellent landlord! Download our free guide, "The DIY Landlord Handbook."
