When setting up your rental properties, one of the primary things you'll have to consider is how much to charge future renters. It might be tempting to push your rents as high as possible, but this can sometimes be a critical mistake in securing tenants. Having an accurate sense of what people are willing to pay for your property and using rent comparison analysis correctly is essential to success in success as a landlord.
If you're renting out property, ultimately the goal is to see profits. After all, a survey by Better Homes and Gardens Real Estate revealed that 96% of people who have invested in real estate believe their decision helped them achieve financial success. This can push many investors into accidentally overestimating the value of their property in order to earn the most money possible. However, shooting too high can push potential renters away from your property in search of more affordable alternatives.
One easy solution to avoid over-valuing your rental property is to compare your rental prices to those that your competitors are offering. Seeking out comparable properties and averaging out their rental prices can give you a sense of just how much you should be charging, given the overall real estate market and your particular location. That being said, sorting through rent statistics and property reports one by one is time consuming and inefficient.
When you're looking at rent comparison analysis and rent estimates, using a landlord app or neighborhood search tool can help. The digital era has made it far easier to find rent estimates without having to sort through individual listings. Additionally, rental property apps can simplify the process of obtaining accurate numbers for calculating your best possible rental price. This way, you'll be able to compete with other investors in the area without the added effort of finding rent averages.
Keeping your rental prices comparable to the competition is key to success as a real estate investor. To learn more about rent comparison analysis or test your rental prices against a rent estimator tool, contact Rentometer today.