Do you sometimes feel like you have to choose between keeping tenants happy and making a profit with your rental unit? With rental analysis, you may get the best of both worlds!
Rental analysis helps property owners determine the ideal rental price by assessing market trends, the individual property's amenities, and potential ROI. This process allows landlords to keep their prices competitive while making the optimal profit.
The analysis must be as accurate as possible to give you trustworthy and dependable results. Here are five ways to ensure you get the best results from your analysis.
1. Focus on Neighborhood Trends
Knowing the market's average rental prices is the essential starting point for competitive pricing. However, it's best not to look at a sample area that is too broad, as some neighborhoods average much higher rents than others. For example, the average rent in Downtown Houston is roughly $1,300 higher than the city's median rent.
Local trends in a neighborhood can also double as a tenant screening guide. When your price is set, you'll see which types of tenants usually fit within that price range (e.g., students tend to rent cheaper one-bedrooms close to their campuses). This can make your tenant selection process much quicker.
2. Utilize Comprehensive Market Data
When it comes to your neighborhood, however, it's a good idea to source as much data as possible. Some great platforms that provide valuable data include:
- Zillow
- Zumper
- Rentometer
- Mashvisor
These platforms provide rental market insights such as average prices, trends, and statistics (e.g., the number of available rentals, demographics, etc.). Taking an average of all the indicators given by the various platforms will provide you with the local market's most accurate reading.
3. Monitor Economic Indicators
Houston has seen net population gains year over year, which means rental prices tend to increase because of the demand. Pay attention to economic factors like:
- Population growth
- Employment rates
- Demographic data
These statistics can help you strategically set your price point to cater to the best tenants for your rental unit.
4. Factor in Your Property's Unique Qualities
Property assessment is a vital part of a holistic rental analysis, which means you shouldn't simply look at the averages and charge the same rent or less. Consider whether your property has features that make it more valuable or stand out in some way. Such features might make it competitive even if you ask for a higher price.
5. Leverage Analytic Technologies
Modern technology provides powerful tools for rental analysis, offering predictive insights based on historical data. Analytical software can forecast rental trends based on the historical information available. This can help you strategically adjust your prices or prepare for risks that landlords of previous generations wouldn't have seen coming.
Become a Rental Analysis Pro Today
Rental analysis is a game-changer for landlords looking to balance tenant satisfaction and profitability. You can confidently set the ideal rental price by understanding local trends, leveraging technology, and factoring in your property's unique features. Stay ahead of the competition and make data-driven decisions to maximize returns and attract the right tenants.
PMI Bear Creek uses state-of-the-art technology in our property management, screening processes, and rental analysis. Our expertise in the Houston property market also helps us give you unbeatable insights. Contact us today for lease evaluation, property management, and more landlord tips!
