The most recent Census data showed there are 48.2 million individual rental units in the United States. Prospective tenants have a lot of properties to choose from, so you need to make sure that yours is competitive.
The best way to stay competitive is to find out what your competition is doing and develop your own plan accordingly. Knowing what other rentals are going for and what they offer prospective tenants can help you know your next move.
Be sure to follow these essential rental analysis and investment property tips as a first-time landlord in Killeen, TX.
Pay Attention to the Local Market
Be sure to go as local as possible when researching the Killeen rental market. You need to take a close look at the competition to get an idea of what properties are being leased in the area. Try to understand the various trends regarding pricing, vacancy rates, and market conditions.
Looking far away from where your property is located won't be helpful. Make sure that you stick to Killeen, and ideally, properties that are in your neighborhood.
Compare Rental Properties
Next, identify some properties that are very similar to your own. Once you find them, compare them carefully. Determine what they offer that is similar and different from your own.
You may find that rents vary and some are higher than others. If a property nearby is much more expensive than yours, try to identify what the differentiating factor is. Evaluating other properties can give you a lot of insight into your own.
Consider All Relevant Factors
When performing a real estate analysis, consider all relevant factors and don't just focus on one. There's a lot more to a property besides square footage or how many bedrooms and bathrooms it has.
Make sure to compare everything that relates to a competing property, including the property size, location, amenities, neighborhood, proximity to schools, policies on pets, and more.
Calculate Expenses and Rent
Once you've researched other properties in the area, take the time to calculate and estimate the potential rental income of your property and your ROI.
In addition to considering the rental rates of other properties, consider your expenses. Take maintenance, property taxes, and insurance into account to get a clearer picture of how much you should rent your property for. Subtract expenses from your expected rent to get a clear estimate of the income for your rental.
Following These Rental Analysis Tips
If you're a first-time landlord, it's essential to perform a thorough rental analysis. Evaluating other properties in your area and carefully considering your expenses can help you set the perfect rent for your property.
If you're leasing a property in Killeen, it can be well worth having expert property managers on your side. PMI Phantom Realty is locally owned and part of a nationwide chain that leads the rental property management industry. We can help make your first rental property a success.
Need help setting a price for your rental? Get your free rental analysis today if you want to become a successful first-time landlord.
