About 70 percent of all rental properties are owned by individuals. This reflects the reality that rental investing is a lucrative endeavor if you manage it properly. This involves some level of expertise and ongoing monitoring of market trends.
Having more information always helps you make better decisions. That is where a rental analysis comes in. This is a surface-level look at similar properties in your area.
Below are five benefits of conducting a rental analysis for your rental investment in Grand Rapids, Michigan. Keep reading to find out how it can help you make solid decisions about your properties.
1. Know the Competition
A rental property only makes you money if you have tenants. This means you need to know what kind of competition you are up against.
This includes pricing in general, but it also gives the landlord advice on making an "apples-to-apples" comparison. For instance, if you see certain property characteristics or features that push rents higher, you can have confidence in listing in that range, if your rental shares those same assets.
2. Have a Broader Sense of the Community
A rental analysis will drill down on various aspects of the neighborhood. This will help you have a better sense of what may attract certain renters and what may give them pause.
This includes schools and access to parks, highways, and recreation. You will know how walkable the neighborhood is, as well as the availability of shopping and restaurants.
3. More Targeting Marketing
All the above information can help you hone your marketing endeavors. You will have a better idea of which prospective renters you should target based on the property and the surrounding neighborhood. This will help you not only rent the property faster but to tenants who are going to be happy in the area and more likely to stay longer.
4. Save Money
A rental analysis will help save you money. In general, it is going to allow you to rent the property quickly and for the right amount. It also will help you determine which improvement projects you should focus on to make the rental more attractive.
The opposite is also true. Without a solid understanding of the value of your property and how to make it stand out in a competitive market, you are losing money.
5. Leverage Other Investment Tools
Many property management and investment companies will bundle rental analysis with other products. This might include tenant screening, rent collection, financial reporting, and advice on how to invest in real estate. If you are already looking for these services, a rental analysis can yield huge returns for minimal cost.
Learn More About Rental Analysis and Other Property Management Tools
Now that you understand the benefits of conducting a rental analysis, you can determine if it is the right move for your real estate investment. For a nominal cost, it can give you the information you need to make your property attractive and competitive amidst a crowded field.
PMI West Michigan is a full-service property management company. We provide everything a real estate investor needs to market and manage their properties, including a free rental analysis. Reach out to us today to learn more.