A recent survey found that at least one-third of Rhode Island households are currently cost-burdened. This means that they're spending more than 30% of their income on rent.
It's common for landlords to assume that raising the rent each year always works in their favor. However, if you're outpricing your tenants and applicant pool, you're putting yourself at risk of lost rental income.
A rental analysis in Woonsocket, RI can set you back on the right path. Read on to learn how to conduct a rental analysis and when to call a professional property management company.
What Is Rental Analysis?
In short, rental analysis involves both researching your local market and evaluating your rental property. The goal is to determine how much rent you can and should charge to find great tenants, stay competitive, and turn a profit.
If you want to become a great property investor, it's time to perform a rental analysis on all of your Woonsocket properties. We recommend updating your analysis every few years to stay on track. Overcharging for rent can drive potential applicants away and leave your current tenants unable to keep up with payments.
Factors to Consider in Rental Analysis
In order to perform a thorough rental analysis, you'll start by assessing your rental property. Make sure that you have records regarding:
- Square footage
- Shared amenities (e.g., a pool or gym)
- Unit amenities (e.g., number of bathrooms, in-unit laundry, upgraded appliances, etc.)
- Recent maintenance and improvements
- Areas that need improvement (e.g., broken shingles, single-pane windows, outdated carpets, etc.)
Once you have a solid assessment of your property's condition, it's time to do market research. Start with the average rent in your neighborhood before looking more closely at properties that are most similar to yours.
Remember, applicants will also compare similar properties, and charging far more than the competition may reduce your applicant pool.
Signs You Need Property Managers to Help
If you've never performed a rental analysis in Woonsocket, RI before, you may want to partner with experienced property managers.
Property managers can also step in when your tenant turnover is increasing or your applicant pool is dwindling. Often, these kinds of setbacks reflect several problems, from the cost of rent to the condition of the property and beyond. Property managers can start with a rental analysis before helping landlords create a better strategy to improve tenant relations.
Finally, if you can't seem to turn a profit without charging above-average rent, it's time to consult a property management company. Improved accounting services and new vendors can make a big difference.
Need Woonsocket Rental Analysis? PMI Can Help
If you're having trouble finding or keeping tenants, it's time to go back to the drawing board. A renewed rental analysis can get your rent prices back on track and help you determine areas for improvement.
The PMI property managers in Woonsocket are here to help. With our customizable property management services, you can get the help you need at a price that works for you. Contact us to get started with your rental analysis today.
