Real estate remains one of the more profitable investments today. However, managing rental properties requires a lot of hands-on involvement, which is time-consuming and a lot of work.
That is because a property investor has to ensure theirs is attractive in a competitive rental market. The more informed you have the better chance of success.
This is where a rental analysis comes in. It can help you make determinations about everything from needed improvements to the right rental price. Keep reading to find out how it can help you get the most out of your Lake Havasu home or condo.
What Is a Rental Analysis?
A rental analysis is an assessment that looks at various aspects of a rental unit. This includes trends in the local real estate market. It compares rental prices of similarly-sized units.
It also takes into account things like amenities and proximity to local attractions. These often include shopping, restaurants, nightlife, parks, recreation, and public transportation.
Besides the strengths of a property, a rental analysis examines any deficits. These might include needed improvements or repair costs. In short, a rental analysis gives you a snapshot of a property's rental prospects, as well as potential earnings minus expenses.
What Are the Benefits of a Rental Analysis?
There are several advantages to getting a rental analysis. Here are the main ones to consider:
Rental Liklihood and Income Potential
One of the most important pieces of information that a rental analysis gives you is a ballpark rental price. This will be based on many different factors.
These include the square footage, the general shape of the property, the neighborhood, and local current market trends. This information can be useful not only for anticipating income, but for price optimization. If you price a rental too low, you are losing potential income, but pricing too high means it could go unrented.
Snapshot of Expenses
One of the biggest benefits of a rental analysis is that it gives you information about potential costs. Often, a prospective landlord will look at a property and only see rental income, while overlooking how much it will cost to maintain the property.
This includes regular upkeep as well as improvement projects. It will give you a sense of maintenance costs on HVAC, electrical, plumbing, landscaping, and pest control. It also will break down how much you can expect to spend on repairs down the road.
Finally, a rental analysis will give you an idea of how much renovations would cost. It will point out ones that may be necessary to put the property on the market. It also will look at optional improvements and estimate the impact they might have on rental potential.
Get a Free Rental Analysis Today
Now that you understand what a rental analysis entails and the advantages it has to offer, you can get started. A prominent real estate management company can further advise you on using this tool to get the most out of your investment property.
PMI Lake Havasu is a full-service real estate asset management company. We offer a variety of services, including rental analysis. Reach out to us today to schedule a free consultation to discuss your Lake Havasu property.