Separating your emotions from your business decisions is challenging as a real estate investor. Having accurate data to lead your decision-making will improve your efficiency and overall productivity. Whether you’re analyzing potential properties to invest in, setting your rent price when listing a property, or adjusting the rent price when renewing a lease, it’s important to have readily accessible rent data you can trust.
Let’s explore how Rentometer can help improve your real estate investing business.
Calculating Cash Flow
When analyzing potential deals, it’s important to know market rent to help determine the property’s monthly cash flow.
To calculate cash flow, subtract the total expenses from the total rental income. Generally speaking, investors typically avoid investing in a property that will produce a negative cash flow.
Rent comps from Rentometer will give you a strong idea of what a property will rent for each month. Once the rental income is predicted, you can resume your cash flow analysis to determine if the property will be a good investment or not.
Setting a Competitive Rent Price
Setting the Rent Price When Listing a Property
When listing a rental property, you want to make sure to set a competitive rent price. Setting your rent price to align with market rent will help attract the right tenants and potentially maximize monthly cash flow. Having reliable data to support your pricing decisions will help you gain confidence in your market.
Adjusting the Rent Price When Renewing a Lease
It’s important to always check the market rent when renewing a lease. Rent prices fluctuate in any given market over time, so it’s important to understand what the market rent is and align your rent price accordingly. Doing so will ensure that your price is fair to both you and your tenant.
Having reliable rent data available at the tips of your fingers will ease your mind when making business-related decisions. Running a successful rental property business starts with running rent comps and having data that you can trust. That’s why Rentometer is one of the best resources for rental property investors.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.