How to Conduct a Home Rental Market Analysis
Today’s blog will explain how to conduct a rental market analysis on your home. This is a useful tool when you’re trying to determine how much rent to ask or if you’re wondering what kind of rent you can collect if you turn a property into a rental. A market analysis will tell you if you’re getting what the market can support for your property.
The process is the same as when you’re selling a home. You have to take a sample. Do a little research to find out what properties are renting for in your neighborhood. When you’re comparing prices, you have to compare in the same neighborhood. It doesn’t help you to look at what homes are renting for across town or in other states. Take a look at your location and then, look at the number of bedrooms. From there, move on to comparing the number of bathrooms and then the square footage. When you use a local online site, you can filter your search and narrow results down to your community and then the number of bedrooms, bathrooms and the size of the house. These are the things people look at before anything else. With this information, you will get a good feel for what your neighbors are earning in rental income.
The more comparisons you can find, the better your data for an analysis. If you don’t want to do it yourself, consider calling us. This is something we do all the time. We are more than happy to come out and do a rental market analysis for you. If you’re wondering what your property is worth, contact us at Advanced Solutions Property Management, and we’ll help you with your market analysis.