If you’re unsure as to when you’re supposed to adjust your rental rates, perhaps it’s because you haven’t done a market assessment on your rental properties in Tulsa within the past 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. But to know for sure how much you should raise your rental rates, or even whether or not you should raise them, you will need detailed market information. This data can help you get to the most competitive price for each of your properties. This is why an annual market assessment is important to your long-term real estate investing success.
Implementing regular market assessments are a key part of owning a profitable investment property in Tulsa. These assessments help property owners find out the market rental rate for their single-family rental homes. There are a lot of ways to calculate rental rates, but if your rate isn’t based on the rental market, then you risk setting a rate that is too high, making it very difficult to rent the property. The other way around also has its disadvantages. If you set a rate that is too low, you risk losing rental income, or worse, you’ll drive away potential tenants because the cheap price will make them think that there is something wrong with the property. To guarantee that your rental rates are at par with what renters in your area will pay, it’s vital to know 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. A way to do this is to first identify at least three rental properties that are similar to yours. Figure out what the monthly rent is for each one, and then divide that number by the square footage. Averaging the price per square foot will then give you the average rent of a property in the area that is similar to yours. This will help you arrive at the most accurate rental rate for your property.
There are other considerations that have to be looked at when doing a rental market assessment. These considerations include the attractiveness of the neighborhood, proximity to amenities, and access to major roads and public transit. When assessing the local rental market, there may be things that will warrant a higher rental rate. A neighborhood that is well kept, without distressed properties or broken sidewalks or crumbling roads, will have a stronger appeal for quality renters. Nearby amenities like libraries, shopping, and parks can also be a good attraction, so would quick and easy access to major roads and public transportation. All of these components should be taken into consideration when executing a rental market assessment, leading to appropriate rental rate adjustments.
Most investors realize that rental market assessments are an essential detail when seeking and procuring quality rental properties. However, market assessments must, therefore, be conducted annually to see to it that your rental properties correspond with whatever changes there are 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. For this reason, including industry experts on your investment team is so important.
At Real Property Management Tulsa, we have a free annual rental market assessment for every single one of our property owners currently under contract, together with one free rental market assessment to property owners considering our services. By executing a fresh market assessment on each property every year, one in conformity with market expertise and solid data, we assist investors in retaining and keeping their rental properties competitively and accurately priced.
Would you like to make full use of a free rental property assessment? Contact us to learn more.
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