If you own an investment property you're planning to rent, doing a rental analysis is a smart move. According to recent data, approximately 80 percent of renters say affordability is their main concern.
Before you put your rental on the market in the greater Seattle and Bellevue, WA areas, there are a few vital things to consider.
Read on to learn about the three benefits of performing a rental analysis in these areas to see why it may help you make the most of your real estate profits.
1. It Helps You Stay Competitive
The greater Seattle and Bellevue WA real estate market is extremely competitive with rent prices skyrocketing by the day. Without a rental analysis, you could be either under or over-charging for your place. If you charge too little or too much, it could stay on the market longer than you'd like.
If your property is in a prime location, you might be able to charge more in monthly rent. An analysis helps you determine the best rental pricing based on things like demand and location.
Amenities like a pool, gym, or on-site laundry may also play a role. The analysis helps you see what other landlords are currently charging for rent in your market. This ensures that you're selecting the best, most competitive price without losing profits.
2. A Rental Analysis Helps with Expenses
While you certainly want to maintain your property value and real estate profits, it's also important to keep your monthly expenses in check. If the rent you charge is too low, you might not have ample cash flow to cover the costs that go with renting property.
Common costs that many landlords incur include paying for the mortgage and property tax and paying for property management services. You'll also need to take things like the cost of maintenance into account.
Running a rental market analysis helps you see the bigger picture. When you find the "sweet spot" in terms of rental costs, you'll be able to cover costs comfortably while also bringing in a profit.
3. Your Tenants Will Stay Longer
The constant influx of tenants can be extremely stressful for landlords. Setting a fair rental price might ensure that you keep your new tenant long-term.
If you offer a fair monthly rental price upfront, your tenant is much more likely to stay in the property for longer. Some tenants might even be willing to sign a multi-year lease.
Having a long-term tenant can reduce stress on you, and it helps you focus on other things besides constantly marketing your property. When the lease is up, you can always re-analyze the market value and determine if you want to raise the rent in the future.
Analyze the Market for Maximum Profit
Remember these benefits of doing a rental analysis to help you set a fair rental price and keep your profits. Setting the right price will also help you cover monthly expenses without having to worry about falling short.
If you'd like a rental analysis in the greater Seattle or Bellevue WA area, contact Brink Property Management today.
