Are you thinking about buying a rental property? If so, you understand the importance of conducting a rental analysis. If you're new to the rental property game, you might not have such extensive knowledge of what a rental analysis is.
That's okay, because we're here to help. Check out our brief guide below to find out what you need to conduct a comprehensive analysis.
What is a Rental Analysis?
In layman's terms, a rental analysis is an assessment you conduct to determine whether or not a potential property is worth investing in. You'll use a specific set of parameters to analyze the worthiness of the property before making your final decision.
Typically, this type of assessment would be conducted by a real estate agent. The property being assessed will be compared to other properties that have similar floor plans and attributes.
This aids in creating a fair assessment for the buyer to make their final decision. Now that we've got a clear understanding of what a rental analysis is, the next step is for you to continue reading for some tips that will make it easier to conduct one when you work in real estate in Cleveland.
Choose Your Research Platforms
The first tip we have to offer you as Cleveland landlords is to select the platforms you're going to use to conduct the rental analysis. There are several platforms where listings are posted that provide an in-depth look at the specs of each property.
This can be used to make the best comparison between the property you're looking at and others that are similar to it.
As you continue to collect data about real estate in Cleveland, it will become challenging to remember everything you've learned. This is precisely why we recommend using a spreadsheet to ensure everything you've collected remains organized.
Doing this will make it easier for you to understand what you're looking at and draw conclusions from the numerical data you've collected.
Don't Overlook the Neighborhood
While you might assume the best thing to do is maintain focus on your property you should also take some time to assess the surrounding area. How close is the property to major shopping centers and entertainment?
What are the ratings for the schools in the area? Is there major traffic that occurs daily or ongoing construction? These are things that can affect your assessment of the property you're looking into.
Adjust the Homes Pricing
Our last tip is for you to adjust the price based on various things that you've noticed within your analysis. You need to adjust the price based on the square footage of the home.
It also helps to adjust the price based on amenities and upgrades you've made to the home, as these upgrades could increase the price. Placing a fair value on the home will aid in attracting the right attention from potential buyers.
Tips For a Rental Analysis
When you conduct a rental analysis there are some things to keep in mind. Ensure you compare it to other similar properties and don't forget to adjust the final price.
Contact Remax Haven Realty for help today. We have the resources you need to perform an in-depth rental analysis ensuring the property you've got your eye on is worth the purchase.