It's a great time to be a landlord in Phoenix as rent prices have continued to boom! There are more than enough renters to go around and make a successful business.
But just because prices have grown overall doesn't mean you should make rash decisions for your rental.
A rental analysis can be key to keeping your rental as profitable as possible. Understanding all the ins and outs of your rental property will make a huge difference. Check out the power of a rental analysis!
Gives Greater Insight Into Current Market
The first step to being a successful property owner is buying the right space. Too often people fail to do enough research and end up with a rental that isn't going to make enough to be worth it.
A rental analysis is a key step in an investment property evaluation. It looks at things like:
- Value of the property
- Local rental market trends
- Vacancy rates
- Surrounding area impacts
After all of the data is gathered, you'll be able to see if the property has potential or not. It's the best way to see what's possible after purchasing.
Identify Areas of Property Improvement
Even after finding a great property you're excited about, you'll likely have some work to do. The key to filling it fast is making it as appealing as possible.
During the analysis, you'll be alerted to ways you could improve the property. Then you'll want to do a rental yield calculation to see if those things are worth the cost. If they bump up your potential rent prices, then they likely are. If not, it's probably better to leave them as is.
Key to Setting Rental Prices
A rental analysis is still important, even if you already have tenants in place. In fact, it's sometimes even more helpful for property income optimization.
During this evaluation, you'll be able to see what other comparable spaces are charging for rent. And also how yours compares. This will help you find a fair price that's still going to make you money.
Better Negotiating Power
One of the most important things to figure out as a landlord is your tenant analysis strategy. Keeping your rental full is the only way to make a profit. So finding the right price is a fine balance.
The information gathered during the evaluation is key to productive negotiations. It's easier to explain rent changes to tenants (and keep them on board) when you come with data.
Utilizing a Rental Analysis for Higher Profits
Being a rental property owner means constantly tweaking to get the most profit. Getting a rental analysis is key for all stages of property ownership.
The information you get can help you decide what property to purchase, where to set your rent, and how to keep moving forward. It's a priceless look into your ongoing business.
At PMI Phoenix Metro, our experts can help you get a full view of an investment property. Then we'll take it a step further and help you maximize your efforts. Our team has local, expert knowledge to help boost your business. Get a free rental analysis today!
