The US housing market is up by 6% compared to March 2022. While things have slowed down in recent months, there's still plenty of opportunity for property owners.
Renting your property to others can serve as a great way to establish a passive income stream, but it comes with many different responsibilities.
Conducting a rental analysis can help ensure that you get the most out of your rental property, but not everyone understands the benefits it provides. Let's explore the key information you need to consider.
1. Find More Tenants
As a landlord, the last thing you want is to experience vacancies for your property. Even a single month could set you back thousands of dollars in residual expenses.
Things can become even worse if you have multiple properties vacant at the same time. If your rent is too high, it may be impossible for you to find someone in the area who will rent your property. Setting the right rent will help ensure you have access to as many potential tenants as possible.
In turn, this will minimize the vacancies you experience. However, this will also require you to remain extra vigilant when vetting tenants since you'll have so many to choose from.
2. Keep Tenants Longer
It can be frustrating to have a revolving door of tenants at your rental properties. This requires you to go through the tenant screening process time and again.
It also creates the potential for vacancies. When you set a fair rental price, tenants are much more likely to sign multiyear leases. This will create a situation where you have guaranteed income from the property for the foreseeable future.
At the end of the lease, you can then reassess the situation and determine if you need to increase rent further. Keep this in mind when conducting a rental property analysis.
3. Cover Your Expenses
If your rent is too low, your income will cover your ongoing expenses. These include property maintenance, property tax, mortgage payments, etc. The last thing you want is to realize that you could have charged much more in rent after your tenant signs a long-term lease.
A home rental analysis will help you establish a rental rate that is sufficient enough to provide substantial passive income without deterring potential tenants.
Working with a professional property management company is the best way to get started. When searching for one, check their credentials and past reputation to make sure that you can get the results you need.
You should also consider how comfortable you are communicating with them. If they give off the vibe that they aren't interested in helping you meet your goals, it's in your best interest to search elsewhere for a rental property management company.
Schedule a Rental Analysis
Taking advantage of a rental analysis can help you get the most out of your rental properties. Consider the above information so that you can determine whether or not it's the right choice for you.
Reach out to us today at Askarben Property Management. Our professional team is ready to help you navigate the complications of renting your property to tenants.