If you recently acquired one of the 20 million rental properties found in the United States you're likely excited to get started and find the right tenant. Unfortunately, first-time landlords in Contra Costa often make the mistake of diving into the rental process before they're ready.
Nowhere is this more apparent than when they try to set rental prices. The key to avoiding prices that are too high or low is a proper rental analysis.
But why exactly is a rental analysis important? And how do you conduct one? In this guide, we'll answer these questions so you can make your Contra Costa properties a big success.
Why Is a Rental Analysis Important for First-Time Landlords?
Rental analysis of your property ensures that you're charging a reasonable price for your prospective tenants. Remember that your rental price is a large factor in attracting tenants.
However, if you set it too high or too low it can have a devastating effect on your property. If you set the price too high, you're not going to get a lot of bites from potential tenants.
That means you'll have to spend a lot more on rental marketing with no guarantee that you'll even find someone. As such, it's a waste of time and money.
If your rent is too low, you'll be losing out on money that could go towards repairs or mortgages. A proper rental analysis helps you find the sweet spot that will attract tenants.
How to Conduct a Rental Analysis Yourself
The first thing you want to do for rental valuation is look at other properties directly near yours. See what they're charging for their rent to get a ballpark figure for your own.
From there, you need to consider various factors that can affect the rental pricing. Most people think this just consists of the property location. While location is important you need to know that it's not the only factor.
Many renters are now prioritizing things like affordability, condition, and amenities. You should also do a bit of research when you invest in real estate to determine the market conditions in the Contra Costa area.
How a Property Manager Can Help
Unless you're a real estate investor expert, your rental analysis will likely be an estimate. A good property manager can help you hone that figure into a more accurate rental price.
What's more, as a first-time landlord you likely have a lot of questions about everything from maintenance to accounting.
Property management companies can assist you with any areas you need help in. Just make sure you look for these qualities when searching for one.
Need Help as a First-Time Landlord? Contact PMI East Bay
We hope this guide helped you learn more about how rental analysis can help your Contra Costa properties. Here at PMI East Bay, we don't believe there's any room for guesswork when it comes to setting rent.
That's why we offer our clients a free rental analysis. Not only that, but we can help ensure that your first rental property is a success. So if you want to learn more about how we can help you, get in touch with us today.
